Wall Street Raises Price Targets for Amazon Following Strong Earnings Report
Amazon (AMZN) stock surged 15.32% on July 31, 2026, following a strong second-quarter earnings report that exceeded expectations across the board. The company reported $200.6 billion in revenue for Q2—up 19.6% year-over—ahead of forecasts and with Amazon Web Services (AWS) growing at its fastest pace in nearly five years to reach $42.2 billion, up 36.8%. This performance prompted over a dozen banks to raise their price targets on the stock. Analysts highlighted AWS's robust growth as well as an impressive cloud backlog of $496 billion—up from roughly half that amount last year—as key drivers for optimism. However, concerns remain about Amazon’s cash flow situation; it burned through $7.6 billion in free cash over the past 12 months and plans to spend around $220 billion this year on data centers and chips. While most analysts upgraded their price targets, some trimmed them due to changes in valuation models or concerns over sustainability of growth.
Tickers: $AMZN
Topics: Amazon analyst upgrades AWS growth stock surge