Amazon.com, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +45

Dear Amazon Stock Fans, Mark Your Calendars for October 29

AI infrastructure Analyst upgrade Earnings report AI-generated analysis

πŸ“… Amazon will report Q3 fiscal 2026 earnings on October 29 after market close.

πŸ’° The company raised its full-year capital spending estimate to $220 billion due to AI infrastructure build-out.

☁️ AWS revenue grew 32.7% year-over-year in the first half of fiscal 2026 to reach $79.82 billion.

πŸ“ˆ EPS increased from $3.27 to $8.53 during the first half of fiscal 2026, reflecting strong profitability.

πŸ“‰ Stock price is up only 10.5% over the past 52 weeks despite strong AWS and AI optimism.

πŸ’Έ Net cash used in investing activities reached $216.78 billion for the 12 months ended June 2026.

🏦 Morgan Stanley raised its price target to $350 and increased AWS growth forecasts to 47% for 2027.

πŸ“Š Wall Street consensus rating is 'Strong Buy' with a median price target of $330.18 representing 31% upside.

πŸ” AMZN trades at a forward P/E of 19.29x, which is above the industry average of 16.05x.

Bullish Signals
  • AWS revenue grew 32.7% year-over-year in the first half of fiscal 2026 to $79.82 billion, marking its fastest growth in 18 quarters.
  • EPS surged from $3.27 to $8.53 during the first half of fiscal 2026, demonstrating strong earnings power.
  • Morgan Stanley raised its price target to $350 and increased AWS growth forecasts to 47% for 2027 and 42% for 2028.
  • UBS analyst Stephen Ju forecasts AWS operating margins of 46% in 2027, indicating high profitability potential from AI infrastructure.
  • The consensus Wall Street rating is 'Strong Buy' with a median price target of $330.18 representing 31% upside from current levels.
Risk Factors
  • Heavy capital expenditures on data centers and AI infrastructure have weighed on free cash flow, causing stock to rise only 10.5% over the past 52 weeks.
  • Net cash used in investing activities rose to $216.78 billion for the 12 months ended June 2026, reflecting aggressive spending.
  • The stock trades at a forward-adjusted P/E of 19.29x, which is higher than the industry average of 16.05x, raising valuation concerns.
  • Cantor Fitzgerald lowered its price target to $310 due to intense competition in the consumer cyclical sector.
Full Analysis
Amazon (AMZN) is preparing to report its third-quarter fiscal 2026 earnings on October 29, with investors closely monitoring the impact of aggressive artificial intelligence spending and capital expenditures. The company recently raised its annual capital spending estimate from $200 billion to $220 billion due to higher costs for memory components and continued expansion of AI and cloud infrastructure. Financially, Amazon reported strong performance in the first half of fiscal 2026, with total net sales increasing 18.2% year-over-year to $382.13 billion. AWS revenue surged 32.7% to $79.82 billion, marking its fastest growth in 18 quarters, while earnings per share grew significantly from $3.27 to $8.53 over the same period. Despite strong operational metrics, AMZN stock has underperformed recently, rising only 10.5% over the past 52 weeks as heavy spending on data centers and AI infrastructure has weighed on free cash flow. The stock is currently trading at a forward-adjusted P/E ratio of 19.29x, which is higher than the industry average of 16.05x, reflecting investor caution regarding valuation and capital intensity.