Rosenblatt Sees 45% AWS Growth for Amazon in 2026
Rosenblatt Securities has initiated coverage of Amazon (AMZN) with a 'Buy' rating and set a target price of $335. The firm forecasts AWS revenue to grow by approximately 45% in 2026, ultimately surpassing $335 billion by 2028.
In another development, Amazon issued nearly $194 billion in bonds through July 7, 2026, marking an increase of 79% compared to its full-year 2025 bond issuance. The proceeds from these bonds will be used to fund the expansion of data centers.
Despite reporting strong Q1 results, Amazon's stock price declined by around 2.1% to $260.34 due to rising Treasury yields negatively impacting growth-oriented stocks. Notably, Amazon recorded a significant pretax non-operating gain of $53.4 billion from its Anthropic stake in the first quarter.
Additionally, Amazon is facing class-action lawsuits in Illinois related to the alleged use of recorded voices to train AI without consent. The company disputes the applicability and factual claims made by the plaintiffs. Furthermore, Amazon is expanding Prime Air drone deliveries to nearly 500 cities by year-end, including new locations such as Chicago, Atlanta, Cleveland, Syracuse, and Boise.
The e-commerce giant has also announced plans to open a robotics manufacturing facility in Austin, Texas, which will create between 300-500 jobs and enhance its robotics and automation capabilities for logistics and technology.