Investment firm Wedbush raised its price target for Amazon (AMZN) on Friday, as it anticipates a strong breakout in 2026 after the tech company underperformed for much of this year. More specifically, five-star analyst Scott Devitt lifted his price target from $250 to $280 while keeping a Buy rating ahead of Amazon’s third-quarter earnings report next Thursday.
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Devitt explained that sentiment around Amazon cooled after its last report because AWS, its cloud computing division, grew slower than expected. Still, he argued that the company’s long-term growth story remains intact, thanks to a strong cloud backlog and its heavy investments in new data centers. He also highlighted the steady momentum in Amazon’s retail business and strength in advertising. As a result, Devitt projects third-quarter revenue of $179.37 billion, up 12.9% from last year and slightly above consensus estimates of $177.9 billion.
The analyst also pointed to several upcoming catalysts that could offset recent worries. To begin with, Amazon is working to cut retail costs through automation, which could improve efficiency and margins. In addition, the company may eventually generate revenue from Project Kuiper, its satellite internet unit. There is also speculation that Prime subscription prices could rise in the next year. Together, these factors could help Amazon stock outperform in the near future.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 41 Buys assigned in the past three months. Furthermore, the average AMZN stock price target of $269.03 per share implies 19.9% upside potential from current levels.
