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Amazon's AWS demand boosts profits; $98B debt funds expansion and AI stakes, outlook remains strong.

Analyst Insights
06 Oct 2026
Seeking Alpha
View Source
Bullish
Amazon's AWS demand boosts profits; $98B debt funds expansion and AI stakes, outlook remains strong.

Amazon.com, Inc. is rated a Strong Buy as demand for its AWS cloud services outpaces supply, with most 2027 capacity already reserved. The company recently raised prices, enhancing profitability. Amazon's $98 billion new debt is financing data center expansion and significant investments in AI companies Anthropic and OpenAI. Despite increased interest expenses, these remain manageable relative to operating profits. The true Q3 profit benchmark is $21.7 billion, higher than the reported $17.4 billion due to prior-year adjustments, suggesting Amazon may exceed its guidance. Key risks include AWS backlog concentration in Anthropic and OpenAI, but these do not significantly affect the bullish outlook.

Amazon shares are trading at USD 255.41 on Pluang as of Oct 06, 2026 22:51 WIB, up 1.60% in the last day. The stock shows strong investor interest with 61% of Pluang orders to buy and a market cap of $2.71 trillion. This positive market activity aligns with the news of Amazon's potential Q3 profit surge driven by AWS demand and strategic investments.

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