Wedbush Reiterates Outperform on Amazon (AMZN) Ahead of Earnings

Amazon.com, Inc. (NASDAQ:AMZN) is 1 of the 10 AI Stocks Gaining Attention connected Wall Street. On January 30, Wedbush expert Dan Ives reiterated an Outperform standing connected the banal with a $340.00 terms target. The steadfast sees robust AWS momentum for AMZN, robust Q4 setup, and a $25.2B OI forecast reinforcing aggregate enlargement potential.

The standing affirmation comes up of the company’s fourth-quarter net study scheduled for Thursday, February 5. Webush believes that capitalist assurance has been building, and Amazon’s erstwhile 4th study has had sentiment crook much positive.

“AWS maturation was good up of expectations, and we are encouraged by the implied level of AWS request fixed the gait of backlog maturation and further proviso coming online implicit the adjacent 12 months.”

The steadfast further said that it believes 2026 is going to beryllium a large twelvemonth for AWS, perchance serving arsenic a catalyst for shares. With shares trading for ~22x our 2027 GAAP EPS estimate, it believes the risk-reward is charismatic up of 4th quarter.

“We judge different robust 4th of AWS maturation and continued impervious points from partners could beryllium the cardinal to thrust aggregate enlargement successful the coming quarters.”

Overall, Wedbush is constructive connected the setup starring into the study owed to affirmative commentary astir AWS growth, steadfast trends for the halfway retail business, and robust advertiser demand.

It has raised its estimates for Amazon, projecting fourth-quarter operating income of $25.2 cardinal (11.8% margin), an estimated 1% supra consensus. Meanwhile, it expects operating income of $103.0 cardinal (12.8% margin) for the afloat year.

“Amazon remains our apical eCommerce prime for 2026, and we reiterate our Outperform standing and $340 PT.”

Amazon.com Inc. (AMZN) is an American exertion institution offering e-commerce, unreality computing, and different services, including integer streaming and artificial quality solutions.

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