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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuAmazon underwhelmed investors with its third-quarter results, but Wall Street analysts are still bullish on the stock. The company posted earnings of $1.89 per share, below the $1.96 expected by analysts polled by LSEG. Revenue of $201.94 billion also fell short of a $202.31 billion consensus estimate. Amazon Web Services revenue was roughly in line with expectations at $45.98 billion. Amazon also reported a trailing 12-month free cash flow outflow of $42.4 billion, underscoring the intensive capital requirements of its artificial intelligence build-out. Shares shed nearly 7% in premarket trading as investors grew concerned about its outsized investments into AI. In the third quarter, Amazon poured funds into expanding its AI app building service, Amazon Bedrock . AMZN 1D mountain Amazon share have fallen over the past day. Yet analysts said investors should look past Amazon’s latest financial results and massive spending, pointing to signs that its corporate strategy is already beginning to pay off. “Growth was disappointing vs expectations … but this seems mostly an expectations miss as $3.8bn added [quarter over quarter] was the second highest … added in AWS history and it does not change AWS’s potential for further acceleration and its long-term opportunity,” Morgan Stanley analyst Brian Nowak said Friday in a note to clients. Nowak has an overweight rating on Amazon. He lowered his price target on shares to $335 from $350, though that still implies 37% upside from Thursday’s close. Here’s what else the Street is saying about Amazon. Deutsche Bank: Buy, $325 target “We think the negative stock reaction is a function of AWS growth coming in shy of the Buyside expectation (39% vs. 43%), however, we note that the +40% y/y revenue growth guide for Amazon highlights the visible and accelerating demand the company is seeing today and should result in upward estimate revisions over time. Moreover, the large capex delivery this quarter ($75.9bn) likely implies a significant step up in revenue growth yet again in 4Q/1Q27.” Bernstein: Outperform, $320 “It’s easy to be disappointed by Amazon’s print. The expectation bar pushed so high that even cold water from peer prints didn’t lower the bar enough. But deliver what exactly? Ad growth looked weak though the 2-qtr growth with Prime Day was fine. And 39% Y/Y growth with 39% margins for AWS wasn’t the 40/40 dream, but cloud accelerated AND management offered 40%+ growth through 2028. Value comes from the outcomes not expectations.” Barclays: Overweight, $365 “Amazon is adding the most capacity of any cloud service provider and is seeing its backlog go up by the greatest dollar amount in ’26. YTD stock performance and sentiment remain in the doghouse but are likely setting up for a significant move higher at some point.” Bank of America: Buy, $317 The bank trimmed its price target from $320. Its new forecast implies upside of 30% from Thursday’s close. “With strong q/q and y/y backlog growth driven by new enterprise contracts, steady gains in custom silicon usage & chip sales coming, and Alexa for Shopping growing usage, we think Amazon has strong AI positioning, the top theme in tech.” Goldman Sachs: Buy, $370 The bank lowered its price target from $375. Goldman’s new forecast still implies 52% upside. “Over the short-term, we find investors remain increasingly anchored around questions over the medium to long term framework to analyze for analyzing the evolution of both consumer and enterprise facing AI markets, including how to calibrate the need for sustained capex beyond 2027, the sources and forms of capital to fund the build out, and any evolution of web 2.0 businesses which may result in areas of more pronounced operating volatility than currently appreciated or modeled. Over the next 12+ months, we reiterate our view that AMZN can produce a strong mix of compounded revenue growth and operating margin expansion on a multi-year horizon while continuing to make critical investments in long-term growth initiatives.” UBS: Buy, $352 UBS raised its price target from $348. “Focus today will be on the AWS growth shortfall at 39% YOY vs our 40% and what was likely investor expectations of 42-43%, but we think the more important takeaway was the underlying confidence for mgm’t to offer an accelerating outlook for the segment for not just FY27 but also FY28.” BMO: Outperform, $390 BMO increased its price target from $380, calling for a gain of 60%. “AWS Delivered Impressive 39% YoY Growth, accelerating by 200bps from 2Q26, as Amazon continues to onboard incremental capacity amid ongoing supply constraints. This marks six straight quarters of accelerating AWS growth. We also believe buy-side investors were expecting AWS growth in the 40%+ range, which helps explain the after-hours drop. That said, Amazon’s AI offerings are gaining traction with customers, with AI revenue growing triple-digit YoY and Bedrock as a key driver.” Citi: Buy, $350 “We believe Amazon is building the compute necessary to satisfy demand and we note management’s outlook for 40%+ AWS growth in both ’27E and ’28E with a relatively clear path to $1T in revenue over the next 5-10 years and margins that we believe can (at least) be sustained in the mid-to-high 30% range. We are encouraged with Amazon’s TTM Grocery sales reaching ~$250B in 3Q led by investments in delivery speed and we believe Amazon’s Agentic Commerce strategy is taking shape around Alexa+.” JPMorgan: Overweight, $365 “We believe management’s strong visibility into demand gives it the confidence to underwrite 40%+ growth over the next 2 years & to invest even more aggressively in AI compute infrastructure.”Read More