Amazon Stock Draws Bullish Targets as AI Bets Soar

Amazon ( (AMZN) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Amazon heads into its upcoming Q4 earnings report with strong tailwinds from Wall Street, as analysts increasingly view the stock as one of the most compelling large-cap tech names for 2026. Wedbush’s Scott Devitt reiterated his Buy rating and aggressive $340 price target—implying about 40% upside—citing faster‑than‑expected growth in Amazon Web Services (AWS), a rising backlog, expanding capacity, and strengthening advertising trends. Devitt and his team have raised their Q4 estimates, now projecting operating income of $25.2 billion with an 11.8% margin, and $103 billion with a 12.8% margin for the full year, up sharply from the $17.4 billion operating income reported in Q3 2025. He argues that Amazon has multiple levers to lift profitability over time, from fulfillment efficiency and automation to higher‑margin businesses like AWS and ads, plus potential upside from AI monetization in Alexa and Rufus, Project Kuiper, and possible Prime price hikes.

Across Wall Street, sentiment on Amazon remains firmly bullish. AMZN carries a Strong Buy consensus, with roughly four dozen Buy ratings and only a single Hold, and an average price target around $295–$296, implying about 22–23% upside from current levels. Ahead of Q4, the Street is looking for earnings of $1.96 per share on revenue of about $211 billion, up 13% year over year, with close attention on whether AWS and core retail can sustain momentum despite heavy AI and logistics investment. Oppenheimer has lifted its price target to $315 and boosted its AWS growth outlook, expecting 24% revenue growth in FY26, while also highlighting around $7 billion in expected retail cost savings by FY27 from automation, which could add roughly 5% to operating profit. Adding to the strategic story, Amazon is reportedly in advanced talks to invest up to $50 billion in OpenAI, even as it remains a backer of rival Anthropic—underscoring how central AI has become to Amazon’s long‑term growth narrative and reinforcing investor expectations that the company will be a major winner in the next wave of cloud and AI spending.