Amazon (AMZN) stock has risen 3.2% over the past week, 2.7% in the last month, and 1.3% over the past year. Wall Street’s analysts are firmly bullish, with a Strong Buy consensus and an average 12‑month price target of $295.05 versus the last closing price of $238.42. That target points to meaningful upside potential over the next year, as investors look ahead to accelerating growth in Amazon Web Services (AWS) and a solid performance from the company’s retail operations.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Among the most closely watched voices on the stock is Justin Post of Bank of America, who reiterated his Buy rating on Amazon on January 27, 2026, setting a price objective of $286.00. From the current level, his target still implies notable upside, even after trimming it from a previous $303. Post is a highly ranked analyst, standing at #54 out of 11,984 on TipRanks, with a strong success rate of 68.65% and an average return of 25.00% per rating — credentials that make his bullish view especially influential for investors tracking the name.
Post’s latest report focuses on Amazon’s upcoming fourth‑quarter earnings, where he expects the topline to be driven by both retail and AWS acceleration. He estimates fourth‑quarter revenue of $213 billion and EBIT of $26.0 billion, slightly ahead of Wall Street’s current expectations of $211 billion and $24.6 billion. A key pillar of his thesis is AWS, where he forecasts 22% year‑over‑year growth, faster than the 20% recorded in the third quarter and just ahead of the Street’s 21% view. According to Post, Amazon’s CEO has indicated that demand for AWS still outstrips capacity, which he sees as positive for pricing and future revenue momentum.
On the retail side, Post points to Bank of America’s aggregated credit and debit card data, which suggest stable online spending and continued market‑share gains for Amazon. He expects retail results to come in slightly ahead of consensus, with North America retail growth projected to slow only modestly to 10% year‑over‑year and margins likely to expand more than the 50‑basis‑point improvement currently modeled by the Street. He also highlights that advertising strength, lower fuel costs, and operational efficiencies should support profitability, while layoffs in the fourth quarter should help first‑quarter margins. For the first quarter, he looks for revenue guidance of $173–$178 billion and operating income of $18.5–$22.5 billion, ranges he believes Amazon can ultimately beat.
Looking into 2026, Post thinks Amazon’s improved AWS capacity, potential acceleration in cloud growth, and a better narrative around the company’s artificial intelligence capabilities could all drive a higher valuation multiple, especially with Amazon trading at a discount to its historical P/E. He notes that high‑profile AI IPOs over the next two years could provide favorable comparisons for AWS when investors assess its worth. While he has modestly reduced his valuation multiple on AWS (to 9x sales from 10x), he remains positive on the long‑term story, underpinned by consensus earnings expectations that show solid growth ahead. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.