BNP Paribas analyst Nick Jones highlighted Amazon.com Inc.’s (NASDAQ:AMZN) strong first-quarter performance and raised his price target, citing accelerating AI-driven demand and an improving financial outlook.

Strong Q1 Beat Driven By AWS And Backlog Growth

Jones noted that Amazon delivered a broad-based beat in the first quarter of fiscal 2026, with worldwide net sales reaching $181.5 billion, about 2% above consensus.

Amazon Web Services revenue came in at $37.6 billion, also ahead of expectations, while backlog surged 50% quarter over quarter to approximately $365 billion, excluding the recently announced Anthropic deal.

Operating income and adjusted EBITDA also exceeded estimates, coming in at $23.9 billion and $46.8 billion, respectively, reflecting strong demand across cloud, retail, and advertising businesses supported by AI momentum.

Guidance Signals Continued Demand Despite Spending

Jones highlighted that Amazon’s second-quarter revenue guidance of $194 billion to $199 billion came in roughly 4% above consensus, while operating income guidance of $20 billion to $24 billion bracketed expectations.

He emphasized that AWS’s strength and backlog growth justify elevated investment levels, noting the company maintained its full-year 2026 capex guidance of $200 billion.

He added that further increases in capital spending remain possible if backlog continues to expand.

Higher Estimates And Price Target Reflect Improved Outlook

Jones raised his price forecast to $345 from $320, implying about 29% upside from the current price of $268.3, while maintaining an Outperform rating.

He updated his model to reflect stronger-than-expected first-quarter results and forward guidance, lifting his full-year revenue, operating income, and adjusted EBITDA forecasts.

He based the new valuation on a sum-of-the-parts analysis, citing durable growth momentum across Amazon’s businesses.

CNBC’s Jim Cramer identified Amazon as a standout stock on Monday, citing its resilience through a combination of a vast logistics network, a growing cloud business, and strong ties to the AI boom.

He added that Amazon’s strategy of maintaining low prices helps it stay competitive when consumers cut back.

He also noted that despite market volatility, the stock remains up about 17% this year and is well-positioned to weather higher interest rates.

Cramer highlighted a structural shift toward a “computer-driven economy,” noting that demand for computing power, AI infrastructure, and digital services continues to expand.

He pointed to technology, cloud, and data center-related companies as key beneficiaries that remain relatively insulated from macro pressures like higher oil prices and borrowing costs.

Cramer urged investors to stay invested during market pullbacks, arguing that structural growth in a computer-driven economy continues to support key stocks and sectors.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $320.70. Recent analyst moves include:

  • Stifel: Buy (Raises Target to $319.00) (May 1)
  • Telsey Advisory Group: Outperform (Raises Target to $315.00) (April 30)
  • Canaccord Genuity: Buy (Raises Target to $330.00) (April 30)

Amazon Top ETF Exposure

  • American Century Focused Dynamic Growth ETF (NYSE:FDG): 9.70% Weight
  • Franklin Focused Growth ETF (NASDAQ:FFOG): 9.02% Weight
  • Dana Unconstrained Equity ETF (NYSE:DUNK): 9.10% Weight

Significance: Because AMZN carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Amazon Price Action

AMZN Price Action: Amazon.com shares were up 0.65% at $273.82 during premarket trading on Tuesday. The stock is trading near its 52-week high of $276.10, according to Benzinga Pro data.

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