Key insights
- Truist raised its price target on Amazon to $285 based on expectations of accelerated AWS revenue growth driven by AI adoption and increased data center capacity. Healthy North American marketplace sales and manageable macroeconomic headwinds contribute to the positive outlook. The report anticipates strong Q1 2026 results, with potential upside based on InvestingPro's fair value assessment.
Investing.com - Truist Securities raised its price target on Amazon.com (NASDAQ:AMZN) to $285 from $280 while maintaining a Buy rating on the stock. The shares currently trade at $249.70, near their 52-week high of $258.60, and have delivered a strong 44.66% return over the past year.
The firm expects Amazon Web Services revenue growth to accelerate to 25% in the first quarter of 2026 from 23% in the fourth quarter of 2025. Truist anticipates sustained momentum throughout fiscal year 2026 driven by faster adoption of AI workloads from partnerships including OpenAI and Anthropic, along with significant data center capacity coming online in 2026. Amazon’s overall revenue grew 12.38% over the last twelve months.
Truist’s proprietary card data shows North American marketplace sales remained healthy, growing at approximately 10% year-over-year and outperforming the industry. The firm expects Amazon’s first quarter 2026 results to show further growth acceleration at AWS and above-industry growth across e-commerce and digital advertising.
The firm stated it expects higher fuel costs and macroeconomic turbulence to remain manageable, assuming the turbulence is short-lived.
Truist maintains a constructive view on Amazon ahead of its first quarter 2026 earnings results, scheduled for April 29. According to InvestingPro analysis, the $2.69 trillion company appears undervalued at current levels based on Fair Value metrics. Investors seeking deeper insights can access Amazon’s comprehensive Pro Research Report, one of 1,400+ available reports that transform complex data into actionable intelligence.
In other recent news, NiSource Inc. announced strategic energy infrastructure agreements with subsidiaries of Alphabet Inc. and Amazon Data Services, Inc. to support data center development in Indiana. A long-term energy agreement with an Alphabet subsidiary will facilitate the development and operation of a large-scale data center in northern Indiana, with services expected to commence in summer 2026. Meanwhile, Amazon.com Inc. received reiterated buy ratings from both TD Cowen and Loop Capital, with price targets set at $300 and $360, respectively. TD Cowen forecasts Amazon’s first-quarter 2026 revenue slightly above consensus, driven by accelerating AWS growth, while Loop Capital highlighted Amazon’s confirmed acquisition of Globalstar.
In another development, Oracle announced an expanded multicloud networking collaboration with Amazon Web Services. This partnership will allow connectivity between Oracle Interconnect and AWS Interconnect, enabling customers to access high-speed connections for running applications and moving data between Oracle Cloud Infrastructure and AWS. Additionally, the Depository Trust & Clearing Corp. (DTCC) is working with Amazon to transition its core systems to the cloud by 2030. This shift will be implemented in phases, focusing on clearing, settlement, and risk management tools, with the assistance of Amazon Web Services.
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