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Amazon's AWS posts fastest growth in 4.5 years; shares trade 12% below peak amid rising capex concerns.

Analyst Insights
07 Oct 2026
24/7 Wall Street
View Source
Bullish
Amazon's AWS posts fastest growth in 4.5 years; shares trade 12% below peak amid rising capex concerns.

Amazon's AWS division achieved its fastest growth in over four years, with Q2 revenue at $200.61 billion and AWS revenue up 37% to $42.23 billion. Despite this, Amazon shares remain 12% below their 52-week high, partly due to rising capital expenditures projected at $200 billion for 2026, which has raised concerns among investors. Analysts remain optimistic, with a 24/7 Wall St. price target of $328.86, reflecting a potential 30.75% upside if AWS continues its strong growth and capex translates into free cash flow by 2027. The main risks include high spending and debt levels, but AWS's momentum and AI business growth support a bullish outlook.

Amazon shares trade at USD 258.11 on Pluang as of Oct 07, 2026 22:41 WIB, up 0.71% in the last day but still 9.2% below their 52-week high of USD 284.02. Despite the strong AWS growth highlighted in the news, investor caution is visible with a notable 28% sell order activity on Pluang compared to 72% buy orders. The stock's market cap stands at $2.76 trillion, reflecting its massive scale amid ongoing concerns about capital expenditures and debt levels.

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