Amazon.com price target lowered to $275 from $286 at BofA

BofA lowered the firm’s price target on Amazon.com (AMZN) to $275 from $286 and keeps a Buy rating on the shares. The Q1 outlook suggests stable revenue growth on the high-end with further AWS acceleration possible, but investments will weigh on margins, the analyst tells investors in a post-Q4 note. The stock was pressured in after-hours, likely on a combination of Amazon’s capex outlook and lower Q1 margin guidance plus the prospect of negative free cash flow in 2026, but the firm thinks this capacity will be fully utilized as part of the AI business transformation and will help Amazon “maintain competitiveness in a very attractive sector.”

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