TD Cowen Reaffirms AWS Growth Outlook as Amazon Stock Climbs

Amazon’s stock price saw a slight increase on October 5, 2026, as TD Cowen reaffirmed its positive outlook on the company’s cloud division, AWS. The shares closed at $251.619, up from Friday’s $250.18. TD Cowen maintained a Buy rating, citing strong cloud demand as a key growth driver.

The company’s second-quarter results showed AWS revenue surging 37% to $42.2 billion, with operating income reaching $16.6 billion. This performance translated to an operating margin of 39.3% for the cloud division. However, heavy investments in AI and other expenses led to a trailing twelve-month free cash flow of negative $7.6 billion.

The valuation of Amazon’s shares is currently just 0.58% above TD Cowen’s GF Value estimate of $250.18, suggesting little discount against this benchmark. While AWS has demonstrated strong profitability, the challenge now is whether Amazon can quickly fill its expanding data centers to rebuild free cash flow. The company’s ability to turn this capacity into paying workloads will be crucial for justifying the spending.