Evercore ISI analyst Mark Mahaney says Amazon CEO Andy Jassy’s annual shareholder letter contained many key themes and datapoints that support the firm’s bullish long-term view on Amazon shares. Most interesting to Evercore was AWS’s AI revenue run rate was over $15B in Q1; AWS’s chip business now has a $20B-plus revenue run rate and is growing triple digit percentage year-over-year; Trainium can provide several hundred basis points of operating margin leverage over time; Project Leo now has more than 200 satellites in space; Amazon Now’s deployment in India is causing Prime members to triple their shopping frequency; the introduction of perishables into Same Day Delivery in early 2025 has caused perishables sales to grow by over 40 times; and the average number of monthly Same-Day customers in rural areas nearly doubled in 2025. The firm reiterates an Outperform rating on the shares with a price target of $285.
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