Overview

• TD Cowen’s John Blackledge reiterated a Buy rating with a $255 target on Oct. 7, calling for a Q3 beat and solid Q4 guidance on faster AWS growth and strong advertising.
• BMO Capital reaffirmed Outperform with a $280 target on Oct. 9, saying Q3 checks point to AWS acceleration continuing through the second half of 2025 while noting competition and capacity risks.
• Analysts point to rising GenAI workloads, partnerships such as Anthropic, and AI infrastructure investments as drivers that could ease supply constraints and lift AWS growth.
• AWS accounted for 18.4% of revenue but 53.1% of operating income in the cited Q2, highlighting its outsized contribution to profitability.
• Broader tailwinds span e-commerce scale, streaming, AI and a rapidly expanding ads business, with some estimates modeling roughly 10.6% annualized sales growth from 2024 to 2027.