Evercore ISI reiterates Amazon stock rating on AWS growth
Evercore ISI maintained an Outperform rating and $355 price target on Amazon (AMZN) after Q3 earnings, citing AWS's 39% YoY growth and $578B backlog. AWS is projected to grow over 40% in 2027-2028 and reach $1T in revenue within 5-10 years. AMZN shares fell 6.5% in aftermarket trading, despite a record operating margin of 13.9% and GAAP profit of $28.1B. Analysts have mixed views on AMZN's future prospects, with price targets ranging from $275 to $370.
How this was made
The 30-second read
Why it matters
The upgrade may attract buying interest, but investors should monitor cash flow and guidance revisions.
Market read
Analyst rating change on a mega‑cap stock provides a timely trading signal.
What to watch
Potential pressure from capital expenditure timing and lower-than-expected operating income guidance.
Background
Evercore ISI's rating follows Amazon's Q3 earnings, which showed strong AWS growth but weaker free cash flow.
Ticker impact
Evercore ISI reiterated an Outperform rating and raised its price target to $355 for Amazon after the Q3 earnings release.
likely modest upside as the market prices in the upgraded rating and target
The rating change is a fresh analyst action on a large‑cap stock, providing a concrete decision point for traders.
Market effects
Positive signal for the broader cloud services sector as AWS growth remains strong.
Limited to U.S. equities; no immediate regional spillover.
Reinforces confidence in large‑cap tech stocks globally.
Counterpoint
Free cash flow turned negative and operating guidance missed expectations, suggesting downside risk.
Key entities
- companyAmazon.com, Inc.
US e‑commerce and cloud services giant.
- analyst_firmEvercore ISI
Equity research firm providing the rating.
