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Amazon rated 'Strong Buy' on underestimated AWS growth and margin expansion potential.

Analyst Insights
22 Oct 2026
Seeking Alpha
View Source
Bullish
Amazon rated 'Strong Buy' on underestimated AWS growth and margin expansion potential.

Amazon is rated a 'Strong Buy' due to its underestimated growth potential in AWS and margin expansion. The company's chip business and a large AWS backlog of $496 billion position it for significant revenue and operating income beats in Q3. The current Q3 guidance is seen as conservative, with expectations of around $205 billion in revenue and $45–46 billion in AWS revenue, surpassing consensus operating income estimates. The valuation at 24 times 2027 earnings per share suggests about 20% upside to a $315 price target, though risks remain in capital expenditures and free cash flow.

Amazon shares are trading at USD 258.69 on Pluang, down 1.40% in the past day. The stock has a market cap of $2.83 trillion and a 52-week range between $198.79 and $284.02 as of Oct 22, 2026, 14:11 WIB.

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