Amazon.com (AMZN) Set to Report Earnings as UBS Raises Price Target on AWS Outlook

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Buzzing AI Stocks on Market Radar. On February 3, UBS analyst Stephen Ju raised the price target on the stock to $311.00 (from $310.00) while maintaining a Buy rating. The firm views AMZN as a coiled spring ahead of its 4Q25 results.

Amazon is scheduled to report its 4Q25 results on February 5, with the firm modestly raising its price target after rolling forward valuation assumptions by one quarter and increasing estimates for AWS revenue and Capital expenditures.

Highlighting plans to double capacity by 2027, the firm has raised its aggregated 4Q25-4Q27 CapEx estimates from $300B to $344B (AWS $225B to $260B). It noted that the market is yet to price in a scenario where AWS revenue doubles by 2028 following the step up in capital intensity. This, they estimate, could generate an additional $20 billion in free cash flow that year.

The firm further remarked that 4Q25 results mark the second quarter of AWS acceleration, expecting investor confidence to continue improving and supporting further outperformance.

As 4Q25 results marks the second quarter of AWS acceleration, we expect investor conviction to continue to rise and drive outperformance as capital continues to rotate into AMZN shares. And as we have called out before, the benefits of its other investments across all of e-commerce, content, and LEO – in the form of faster GMV, advertising, and data/access revenue – should also add to FCF upward revisions as well.

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.