We're raising our price target on Amazon after its all-around killer quarter
Shares of Amazon rose after the tech giant reported stronger-than-expected first-quarter results, driven by a continued acceleration of growth in its Amazon Web Services unit. Revenue increased 17% year over year to...
$4,200-$4,600 — Gold (GC) Where to settle in June?
An important development from the financial markets: Shares of Amazon rose after the tech giant reported stronger-than-expected first-quarter results, driven by a continued acceleration of growth in its Amazon Web Services unit. Revenue increased 17% year over year to $181. 52 billion, beating the consensus analyst estimate of $177.
3 billion, according to LSEG data. Earnings per share based on generally accepted accounting principles (GAAP) increased 75% to $2. 64 estimate, per LSEG.
Economic Details
However, it's not a great comparison because the results included pre-tax gains of $16. 8 billion in non-operating income related to the company's investment in Anthropic. Operating income increased 30% year over year to $23.
85 billion, beating the $20. 82 billion consensus forecast. Why we own it Amazon may be widely known for online shopping, but its cloud business is the real breadwinner.
Advertising is another fast-growing business with high margins. Investment in robust e-commerce logistics infrastructure makes its online storefront the place to be. Prime offers free shipping, video streaming, and tons of other perks to keep users paying every month.
Analyst Views
Competitors : Walmart , Target , Microsoft , and Alphabet Most recent buy : April 15, 2025 Initiated : February 2018 Bottom line After a slow start to 2026, Amazon stock has come back to life, gaining roughly 26% in April to new all-time highs. The market quickly realized that Amazon's close relationship with Anthropic would likely spur AWS growth, making management's ambitious $200 billion capex program well worth the spend. The rally set a high bar heading into Wednesday's print, but the company's results resoundingly cleared it, sending shares up about 4% in after-hours trading.
Stepping back, we were pleased to see Amazon deliver its highest operating margin quarter across all segments in company history. Yes, AWS is a crucial part of the story, but the margin improvement across North America and International operations shows the company is operating more efficiently, and high-margin revenue streams have momentum. Amazon is firing on all cylinders, and we are increasing our price target to $300 from $250 to reflect the latest results while maintaining our buy-equivalent 1 rating .
It was a huge night of earnings, with fellow Club names Alphabet , Microsoft , and Meta Platforms also reporting quarterly results . AMZN 1Y mountain Amazon 1-year return Commentary Revenue growth at cloud unit Amazon Web Services (AWS) accelerated to 28. 6% last quarter, leading to revenue of $37.
Financial markets are tracking the development closely as investors assess the likely impact.
