Amazon Stock Falls On Earnings Despite AWS 'Growing At Its Fastest Clip In 4 Years'

Amazon.com Inc (NASDAQ:AMZN) analysts are raising their price targets after the company's first-quarter financial results. With shares trading lower post-earnings, investors could have an opportunity.

The Amazon Analysts

• Goldman Sachs analyst Eric Sheridan reiterated a Buy rating on Amazon stock and raised the price target from $275 to $325.
• Scotiabank analyst Nat Schindler reiterated an Outperform rating and raised the price target from $275 to $325.
• Rosenblatt analyst Barton Crockett maintained a Buy rating and raised the price target from $296 to $332.
• JPMorgan analyst Doug Anmuth reiterated an Overweight rating and raised the price target from $280 to $330.
• Needham analyst Laura Martin maintained a Buy rating and raised the price target from $265 to $300.

Goldman Sachs on Amazon

Amazon showed it is investing in growth themes like compute, commerce and advertising in the first quarter, Sheridan said in a new investor note.

The analyst said the report and guidance indicate the AWS segment can sustain 30% year-over-year growth.

Sheridan said in the short term there could be investor debates on the health of the "global consumer landscape" and Amazon's ability to have advertising growth.

The analyst said Amazon's AWS benefits from the opportunity in the ramp of Gen AI workloads.

"Long-term, we remain constructive on AMZN shares and reiterate our view that Amazon can produce a strong mix of compounded revenue growth and operating margin expansion on a multi-year horizon," Sheridan said.

Scotiabank on Amazon

Amazon showed strong CapEx ROI with AWS acceleration during the first quarter, Schindler said in a new investor note.

"Investors are willing to reward hyperscalers for heavy spending if they can prove strong ROI and margins," Schindler said.

The analyst said the re-acceleration of AWS continued in the quarter.

"AWS is now a $150B annualized run-rate business growing at its fastest clip in ~4 years."

Amazon's backlog is $364 billion, which doesn't include the recent $100B+ commitment from Anthropic, the analyst highlighted.

"The highlight of the call was CEO Andy Jassy's disclosure that Amazon's custom silicon business is growing triple digits to a > $20B run-rate."

Schindler said the quarter showed Amazon is working on supply constraints and "controlling its own destiny."

Rosenblatt on Amazon

First-quarter revenue and operating income growth were higher than expected, Crockett said in a new investor note.

"This was the fastest AWS growth rate in 15 quarters," Crockett said. "The AI ARR within AWS is $15B."

The analyst said AWS backlog was a highlight in the quarter, especially with the $364 billion total excluding the recent Anthropic deal.

JPMorgan on Amazon

AWS and retail growth were both key highlights in the quarter, Anmuth said in a new investor note.

"We project AWS growth of +32% in 2026 and +30% in 2027, which could be conservative based on backlog," Anmuth said.

On the retail side, Anmuth said Stores unit growth was the highest level since the tail end of COVID-19 lockdowns. The analyst also highlighted that everyday essentials items are now around 40% of items sold.

Anmuth said Amazon not raising its CapEx estimates like other technology companies shouldn't be a red flag, as the spending will continue to increase going forward.

"While Amazon did not comment on 2027 capex, we believe AWS growth acceleration, strong backlog & customer commitments, and higher supply chain component costs will likely lead to heavy multi-year capex."

Needham on Amazon

Hardware and business mix are competitive advantages for Amazon, Martin said in a new investor note.

The analyst said Amazon's rapid AWS growth in backlog helps with revenue visibility going forward.

"AWS is accelerating its rev growth, improving its profitability, and growing its long-term rev visibility, which lowers investment risks, in our view," Martin said.

As for artificial intelligence, Martin sees the company benefiting across multiple segments.

"We believe that AI is deepening the strategic integration between AWS, ads, and eCommerce, reinforcing AMZN's strategy of using AI to expand LTV (lifetime value) across its ecosystem."

Martin said AI is also helping Amazon's labor needs and productivity.

The analyst also highlighted that Prime Video was profitable for the first time in the first quarter. Martin said Amazon is a services company and not a products company.  

Amazon Stock Price Action

Amazon stock is down 1.1% to $260.28 on Thursday versus a 52-week trading range of $178.85 to $273.88. Amazon stock is up 14.9% year-to-date in 2026.

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