Overview
- Bank of America’s Justin Post kept a buy rating but cut the price target to $286, projecting Q4 revenue of $213 billion, EBIT of $26.0 billion, and roughly 22% AWS growth.
- Stifel’s Mark Kelley lifted his target to $300 with a Buy, citing resilient advertising trends, healthy Q4 e-commerce checks, and solid AWS performance.
- Reports point to a potential second round of about 14,000 layoffs across units including Prime Video, HR, and AWS, which Post says could benefit Q1 margins.
- AWS secured a reported $581 million U.S. Air Force Cloud One contract and rolled out its European Sovereign Cloud with planned Local Zones in Belgium, the Netherlands, and Portugal.
- Amazon’s heavy AI and cloud capex, estimated around $125 billion in 2025 with more planned in 2026, is pressuring near-term margins even as analysts maintain a broadly positive stance.