Wall Street is increasingly focused on how Amazon.com, Inc. (NASDAQ:AMZN) can turn improving AI execution at Amazon Web Services’ into renewed stock momentum in 2026.
Analyst Take
BofA Securities analyst Justin Post reiterated a Buy rating on Amazon with a price forecast of $303.
The analyst said improving sentiment around AWS’s AI position could become a key driver for Amazon in 2026 after cloud concerns weighed on the stock in 2025.
Amazon gained 5% last year, trailing the S&P 500’s 16% rise and the Nasdaq’s 20% gain, as solid retail execution and margin expansion failed to offset investor worries that AWS was losing ground in AI.
He said that weaker confidence in AWS’s positioning helped push Amazon’s forward EV/EBITDA multiple down about 15% year over year.
Post expects AWS growth to accelerate in 2026 as new capacity comes online and recent AWS leadership changes create an opening to sharpen the company’s AI narrative, while strong growth in Rufus usage supports a more agentic…