The sun has been shining on Amazon (NASDAQ:AMZN) over the past few weeks, and its share price has been jumping upward. AMZN has gained about 18% in the last couple of days alone.
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Forget margin or options. Here's how the pros trade AMZNImprovements in sentiment throughout the market have certainly contributed, while warm words of encouragement from CEO Andy Jassy have also supported the recent uptick. That would be the company head’s April 9 annual letter to shareholders, which contained some encouraging nuggets.
Amazon is placing itself in the middle of the AI “land rush,” according to Jassy, who trumpeted AWS’s AI-driven growth. The CEO pointed out that AWS’s AI revenue run rate is over $15 billion in Q1 2026.
That’s the trend top investor Daniel Sparks is focusing on.
“The strongest reason to be bullish on Amazon stock over the next year and beyond is that AWS still seems to be gaining momentum,” states the 5-star investor, who is among the top 1% of stock pros covered by TipRanks.
Sparks points out that AWS is becoming an increasingly vital part of the Amazon growth story. He notes that the company generated $12.5 billion in operating income last quarter, accounting for half of Amazon’s total operating income. In addition, AWS hit its fastest pace of growth in 13 quarters in Q4 2025.
However, the investor doesn’t discount the impact of Amazon’s massive capex spend, which could be a drag on earnings. That happens when a company parts with $200 billion, as Amazon is planning on doing in 2026.
Still, that’s not a dealbreaker, according to Sparks. In fact, it may even have the opposite effect.
“If Amazon does achieve an attractive return on its capital expenditures, as management expects, investors should want the company to spend heavily on this AI boom,” adds Sparks.
While he’s not expecting “dramatic” growth in the coming year, Sparks suggests that a 12% annual compounding seems realistic going forward. That leads the investor to float the possibility that AMZN’s share price could increase by 76% over the next five years.
“I think this is a fair expectation given the significant acceleration in AWS revenue in Q4 and the company’s broad-based business momentum,” concludes Sparks. (To watch Daniel Sparks’ track record, click here)
Wall Street is also spotting growth ahead. With 42 Buys and 3 Holds, AMZN soars to a Strong Buy consensus rating. Its 12-month average price target of $284.76 points to gains of ~15%. (See AMZN stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.