Oppenheimer Raises Amazon.com, Inc. (AMZN) Target as AWS Momentum and Margin Expansion Accelerate

We recently published an article titled 12 High Growth E-commerce Stocks To Buy. 

Oppenheimer analyst Jason Helfstein raised the firm’s price target on Amazon.com, Inc. (NASDAQ:AMZN) on January 28 to $315 from $305 while maintaining an Outperform rating on the shares. The upward revision reflects increased confidence in Amazon Web Services following the firm’s analysis of Anthropic-related contributions, with Oppenheimer now forecasting FY26 AWS revenue growth of 24%, compared with the Street’s 21% expectation. The firm continues to view Amazon as a top mega-cap opportunity, supported by improving fundamentals across both its cloud and core commerce businesses. Beyond AWS, Oppenheimer highlighted accelerating margin expansion within Amazon’s e-commerce segment, driven by ongoing automation investments across fulfillment and logistics. These efficiency gains are beginning to materialize in profitability, with the firm estimating approximately $7 billion in cumulative cost savings by FY27, equating to roughly a 5% uplift to consolidated EBIT. This margin tailwind underscores Amazon’s ability to leverage scale and technology to enhance returns, even as it continues to invest heavily in growth initiatives.

Separately, Reuters reported that Saks Global, which filed for bankruptcy earlier this year, is planning to end its e-commerce partnership with Amazon and close the Saks on Amazon storefront. The decision appears driven by Saks’ intention to refocus on business segments it views as offering greater long-term growth potential, rather than reflecting any broader strategic shift at Amazon.com, Inc. (NASDAQ:AMZN). While the partnership had faced strain amid Saks’ Chapter 11 proceedings, the development is not expected to have a material impact on Amazon’s overall retail or marketplace operations.

Founded in 1994 and headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) is a global technology leader with operations spanning e-commerce, cloud computing through AWS, digital streaming, and artificial intelligence. With accelerating AWS growth, visible margin expansion from automation, and significant long-term cost efficiency opportunities, Amazon remains well positioned to compound earnings and cash flow, reinforcing its appeal as a core holding for investors seeking exposure to large-scale digital infrastructure and commerce.

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