Amazon (AMZN) Stock: Wall Street Loves It — Here’s Why Analysts Won’t Back Down

TLDR

• Wolfe Research reaffirmed its outperform rating and $320 price target on AMZN on May 29
• Amazon launched its supply chain services on May 4, targeting a market that Wolf estimates is worth more than $1.2 trillion
• UBS reaffirmed its Buy rating with a price target of $333, forecasting AWS revenue to reach $175.9 billion – 36% growth year-on-year.
• Q1 2026 EPS came in at $2.78, beating consensus estimates of $1.63; Revenues amounted to $181.52 billion
• 57 analysts rate AMZN as a Buy, with a consensus target price of $312.52.

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Amazon (AMZN) stock opened at $256.52 on Wednesday, well below Wall Street’s average price target of $312.52, as analysts continue to pile on bullish coverage.

Amazon.com, Inc., AMZN

Wolfe Research reaffirmed its outperform rating and $320 price target on May 29, citing the company’s newly launched supply chain business as a key growth driver.

Amazon Amazon Supply Chain Services launched on May 4. The offering targets non-Amazon sellers and includes Amazon Freight for under-truckload shipping and global logistics for ocean and air transportation.

Wolfe Research estimates the division’s total addressable market at more than $1.2 trillion. This amount is divided into $750 billion for shipping, $200 billion for shipping in the United States, $120 billion for distribution and fulfillment, and $100 billion for international package delivery.

This is a great sandbox to play in.

Focus on AWS growth

UBS also reaffirmed its Buy rating on May 27, setting a price target of $333 — one of the most bullish calls on the Street right now.

The company has updated its data Os Forecast model after Amazon beat Q1 estimates. UBS now expects AWS revenue to reach $175.9 billion, reflecting 36% year-over-year growth — ahead of the consensus estimate of $166.6 billion.

UBS also expects AWS to add $350 billion to its backlog by 2026 and beyond, underscoring continued demand for cloud infrastructure.

Amazon’s results for the first quarter of 2026 gave analysts a lot to work with. The company reported EPS of $2.78, well ahead of the consensus of $1.63. Revenue was $181.52 billion, beating expectations of $177.28 billion and up 16.6% year over year.

Institutional buying continues

On the institutional side, multiple funds added to their AMZN positions in the fourth quarter. Brighton Jones LLC increased its stake by 10.9%, bringing its holding to more than 4 million shares worth $885 million. Bank Pictet & Cie Europe AG added 2.8% to its position, which is now worth $442 million.

Greenwood Gearhart Inc. Increasing its stake by 3.4%, it purchased an additional 4,033 units, bringing AMZN’s total holdings to $28.3 million. Institutional investors now own 72.2% of the shares.

Analyst coverage remains largely positive. Of the 60 analysts tracked, 57 have a buy rating and three have a hold rating. Doesn’t sell.

Benchmark raised the price target from $275 to $370 on April 30 — the highest target mentioned in recent coverage.

Headwinds are worth a look

Not all skies are clear. Stanley Druckenmiller has reportedly cut his position at Amazon, a move that drew attention given his profile. The company is also facing a cloud procurement review in the European Union that could impact AWS government contract wins, and Ring is dealing with a privacy class action lawsuit over facial recognition.

Two Amazon executives also recently sold stock under previously arranged 10b5-1 plans. Matthew Jarman sold 15,467 units at $263.40 on May 21. Douglas Herrington sold 27,500 units at $275.00 on May 4.

AMZN’s 52-week range is between $196.00 and $278.56, with a market cap of $2.76 trillion.