Key Takeaways
- Wolfe Research maintained its Outperform stance with a $320 price objective on AMZN shares on May 29
- The company unveiled Supply Chain Services on May 4, entering a market Wolfe estimates exceeds $1.2 trillion
- UBS maintained its Buy recommendation at $333, forecasting AWS will generate $175.9 billion in revenue — a 36% annual increase
- First quarter 2026 earnings per share reached $2.78, crushing the $1.63 Street estimate; total revenue climbed to $181.52 billion
- Current analyst sentiment shows 57 Buy recommendations, with the average price objective landing at $312.52
Amazon (AMZN) stock started Wednesday’s session at $256.52, trading considerably beneath the Street’s consensus price objective of $312.52, even as Wall Street firms maintain their optimistic outlook.
Wolfe Research maintained its Outperform recommendation alongside a $320 price objective on May 29, highlighting the company’s recently unveiled supply chain operations as a significant catalyst for expansion.
Amazon unveiled Amazon Supply Chain Services on May 4. The new platform caters to businesses outside Amazon’s marketplace and incorporates Amazon Freight for less-than-truckload shipments plus Global Logistics for ocean and air transportation.
Wolfe Research estimates the addressable market for this business unit exceeds $1.2 trillion. This encompasses $750 billion in freight operations, $200 billion in domestic shipping, $120 billion in warehousing and fulfillment services, and $100 billion in cross-border parcel delivery.
That represents substantial opportunity.
Cloud Computing Revenue Momentum
UBS maintained its Buy recommendation on May 27, establishing a $333 price objective — among the highest currently on Wall Street.
The investment firm refreshed its AWS revenue model following Amazon’s first quarter performance that exceeded Street projections. UBS currently anticipates AWS will generate $175.9 billion in revenue, representing 36% annual growth — surpassing the consensus forecast of $166.6 billion.
UBS further anticipates AWS will accumulate $350 billion in committed contracts through 2026 and beyond, demonstrating robust demand for cloud computing services.
Amazon’s first quarter 2026 financial results provided substantial validation for analyst optimism. The e-commerce and cloud giant delivered earnings per share of $2.78, significantly exceeding the $1.63 Street consensus. Total revenue reached $181.52 billion, surpassing projections of $177.28 billion and marking a 16.6% year-over-year increase.
Large Investors Expand Holdings
Regarding institutional activity, several major funds expanded their AMZN allocations during the fourth quarter. Brighton Jones LLC grew its position by 10.9%, elevating its holdings to more than 4 million shares valued at $885 million. Bank Pictet & Cie Europe AG expanded its stake by 2.8%, now valued at $442 million.
Greenwood Gearhart Inc. expanded its allocation by 3.4%, acquiring an additional 4,033 shares and elevating its total AMZN investment to $28.3 million. Institutional ownership currently represents 72.2% of outstanding shares.
Wall Street coverage skews heavily bullish. Among 60 analysts providing coverage, 57 recommend buying while three suggest holding. Zero sell ratings exist.
Benchmark elevated its price objective from $275 to $370 on April 30 — representing the most aggressive target in current Street coverage.
Potential Challenges on the Horizon
The picture isn’t entirely without concerns. Stanley Druckenmiller reportedly reduced his Amazon holdings, a development that garnered attention considering his investment track record. The company additionally faces European Union scrutiny regarding cloud procurement practices that could impact AWS public sector opportunities, and Ring confronts a class-action complaint related to privacy concerns surrounding facial recognition technology.
Two Amazon division heads recently executed stock sales through pre-scheduled 10b5-1 arrangements. Matthew Garman divested 15,467 shares at $263.40 on May 21. Douglas Herrington sold 27,500 shares at $275.00 on May 4.
AMZN’s 52-week trading range extends from $196.00 to $278.56, with current market capitalization standing at $2.76 trillion.
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