A mixed fourth-quarter and high Capex guidance from Amazon.com Inc (NASDAQ:AMZN) has analysts revising their price targets and short-term outlooks on the technology and e-commerce giant.
The Amazon Analysts
- Wedbush analyst Scott Devitt maintained an Outperform rating on Amazon and lowered the price target from $340 to $300.
- Telsey analyst Joseph Feldman maintained an Outperform rating with a price target of $300.
- Rosenblatt analyst Barton Crockett maintained a Buy rating and lowered the price target from $305 to $296.
- Goldman Sachs analyst Eric Sheridan maintained a Buy rating and lowered the price target from $300 to $280.
- Needham analyst Laura Martin maintained a Buy rating with a price target of $265.
Wedbush on AMZN
Fourth quarter financial results from Amazon were "healthy," Devitt said in a new investor note.
The analyst said that "prove it mode" has been triggered for Amazon with the high Capex guidance.
"The increase in spending will remain an overhang as investors digest the guide and will likely need to see more tangible returns before regaining comfort," Devitt said.
The analyst said there are opportunities for Amazon to improve its margin, including fulfillment, AWS, and advertising.
Strong demand for AWS and AI from Amazon could be undervalued by investors, the analyst added.
"AWS has doubled its capacity relative to 2022, and is on pace to double again by 2027. We think Amazon's leading position in the AI space is underappreciated."
Telsey on AMZN
Quarterly results from Amazon were "solid" and so was guidance, Feldman said in a new investor note.
"AWS remained the star of the show, with growth accelerating due to rising demand for cloud and AI products," Feldman said.
The analyst said Amazon should continue to gain market share thanks to its strong relationships, technology and loyal Prime members.
"Investment to support and drive growth."
Rosenblatt on AMZN
The $200 billion Capex figures makes 2026 an "AI investment year" for Amazon, Crockett said in a new investor note.
"Yet unlike the comparable capex ramps announced at Alphabet and Meta – which we see slashing FCF but leaving it positive – Amazon's plans we estimate will drive them into slight cash burn," Crockett said.
The analyst said this won't be a huge problem due to cash on hand and the company's long-term debt levels.
"But this exemplifies how aggressively Amazon is pushing into this AI cycle."
Crockett said Alphabet (NASDAQ:GOOGL) could be catching up with Google Cloud. AWS backlog was $244 billion, up 22% quarter-over-quarter and up 38% year-over-year. Google Cloud backlog was $240 billion, up 55% quarter-over-quarter and up 158% year-over-year.
Goldman Sachs on AMZN
Amazon's investments align with its long-term plans for AI and commerce, Sheridan said in a new investor note.
"AMZN laid out a strategy that places the company squarely toward an investment cycle across both its cloud computing business and its eCommerce operations globally," Sheridan said.
The analyst said Amazon could be scrutinized for its high 2026 capex.
"Over the 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."
Needham on AMZN
Martin said Amazon is winning by having AWS, advertising and ecommerce all connected.
"To use AI capabilities, enterprises must first be in the Cloud and AWS is the largest cloud provider, so AMZN wins," Martin said.
The analyst said Amazon noted that AWS remains ahead of Google Cloud in annual revenue.
"AMZN sits at the center of a key AI narrative battle."
AMZN Stock Price Action
Amazon stock is down 9.3% to $201.98 on Friday versus a 52-week trading range of $161.38 to $258.60. Amazon shares are down 10.9% year-to-date in 2026.
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