Amazon Price Target Raised to $320 on Record Margins, Accelerating AWS Growth, and Strong Q2 Outlook

In a report released yesterday, Shweta Khajuria from Wolfe Research maintained a Buy rating on Amazon, with a price target of $320.00.

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Shweta Khajuria has given his Buy rating due to a combination of factors including Amazon’s broad-based outperformance in Q1, where revenue and operating income exceeded consensus and margins reached a record high, signaling strong operational leverage across the business. Management also raised Q2 guidance for both sales and operating income, helped by the timing of Prime Day, even while absorbing higher spending on logistics, fuel, and stock-based compensation.

Another key driver behind the rating is the accelerating momentum in AWS, with mid‑to‑high‑20s growth, record sequential revenue additions, a rapidly expanding backlog, and a growing AI revenue base that is supported by Amazon’s custom chips now at a roughly $20B run rate. Khajuria also points to Amazon’s robust retail unit growth, the scaling advertising franchise, and sizable planned capacity expansion, which together underpinned a higher price target of $320 and support the view that the stock still offers attractive value relative to its long‑term earnings power.

In another report released today, Barclays also maintained a Buy rating on the stock with a $330.00 price target.