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Amazon seen as strong buy with AWS growth and AI investments driving future revenue and earnings potential.

Analyst Insights
02 Nov 2026, 11:48 WIB
Seeking Alpha
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Bullish
Amazon seen as strong buy with AWS growth and AI investments driving future revenue and earnings potential.

Amazon is considered a strong buy due to accelerating growth in its AWS cloud business and strategic investments in AI, including a stake in Anthropic. AWS has a $578 billion backlog and is sold out through 2027, providing strong long-term revenue visibility. Although Amazon currently shows negative free cash flow due to heavy data center investments, these are expected to lead to significant revenue growth. The stock trades at about 24 times projected 2027 earnings per share, below its historical average, with analysts forecasting a 36% upside. AWS alone is expected to generate more operating income by 2027 than Amazon did in 2025, highlighting strong future profitability.

Following Amazon's strong buy rating based on its AWS growth and AI investments, the stock is currently trading at USD 242.69 on Pluang, up 0.98% as of Nov 02, 2026 17:02 WIB. This price sits comfortably between its 52-week low of USD 198.79 and high of USD 284.02, reflecting steady investor interest. Amazon's market cap stands at $2.60 trillion, with a typical hold time of 128 days on the platform.

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