Amazon, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Maria Ripps from Canaccord Genuity maintained a Buy rating on the stock and has a $300.00 price target.
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Trade AMZN with leverageMaria Ripps has given his Buy rating due to a combination of factors that highlight Amazon’s strong operating performance and long-term growth potential. She notes that fourth-quarter results slightly exceeded expectations on both revenue and operating income, driven by solid trends in core retail, third-party seller services, and advertising, with Prime Video meaningfully supporting ad growth. Despite some pressure from near-term guidance that embeds incremental costs and a lower operating income margin versus consensus, she views the recent share pullback as disconnected from the underlying operational efficiency and earnings power. The valuation framework, which applies differentiated multiples to eCommerce, AWS, and Advertising, supports her $300 price target and implies further upside from current levels.
At the center of her bullish stance is the accelerating momentum in AWS, where revenue growth has re-accelerated to the fastest pace in more than three years and the order backlog is expanding rapidly. She emphasizes that Amazon’s plan to deploy roughly $200 billion in capital expenditures in 2026—largely directed toward AWS and AI infrastructure—is backed by strong demand signals, including rapid uptake of proprietary chips, high utilization expectations for Trainium3, and robust growth in Bedrock’s generative AI services. Management’s track record in forecasting capacity needs and monetizing newly installed AI infrastructure provides her confidence that elevated CapEx will translate into substantial dollar growth over time. In her view, investors focusing primarily on near-term margin dilution are overlooking the attractive risk/reward profile for long-term shareholders, reinforcing her Buy recommendation on AMZN.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $280.00 price target.
AMZN’s price has also changed slightly for the past six months – from $213.750 to $222.690, which is a 4.18% increase.