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Amazon stock fell despite AWS growth; analyst sees 60% upside on AI and cloud strength.

Analyst Insights
11 Sep 2026
24/7 Wall Street
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Bullish
Amazon stock fell despite AWS growth; analyst sees 60% upside on AI and cloud strength.

Amazon's stock dropped 7.49% last month even as AWS reported its fastest growth in 18 quarters, growing 37% year-over-year. The decline is mainly due to heavy capital spending of $53.1 billion in Q2 and a negative free cash flow outlook for 2026, despite strong fundamentals in cloud, AI, and advertising. Loop Capital analyst Rob Sanderson projects a $405 price target, implying a 60% upside based on AWS's enterprise growth, retail margin expansion, and a scaling ad business. The stock's risk-reward profile is attractive if Amazon's heavy spending leads to future monetization and cash flow improvements by 2028.

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