Key Takeaways
- Wolfe Research maintained its Outperform designation with a $320 price objective for AMZN as of May 29
- The company unveiled Supply Chain Services on May 4, entering a marketplace Wolfe estimates exceeds $1.2 trillion
- UBS maintained its Buy stance at $333, forecasting AWS will generate $175.9 billion in revenue — representing 36% annual expansion
- First quarter 2026 earnings per share reached $2.78, surpassing the $1.63 analyst consensus; total revenue achieved $181.52 billion
- 57 Wall Street analysts maintain Buy recommendations for AMZN, with average price expectations at $312.52
Amazon (AMZN) stock began Wednesday’s trading session at $256.52, trading significantly beneath the Street’s collective price objective of $312.52, while bullish analyst sentiment continues mounting.
Wolfe Research maintained its Outperform designation alongside a $320 valuation on May 29, highlighting the company’s recently introduced supply chain business as a significant catalyst for expansion.
Amazon unveiled Amazon Supply Chain Services on May 4. This new venture focuses on merchants operating outside Amazon’s ecosystem and encompasses Amazon Freight for less-than-truckload transportation plus Global Logistics for ocean and air cargo services.
Wolfe Research estimates the complete addressable opportunity for this division exceeds $1.2 trillion. The breakdown includes $750 billion in freight operations, $200 billion across US shipping markets, $120 billion in warehousing and fulfillment services, alongside $100 billion in global parcel distribution.
The opportunity landscape appears substantial.
Cloud Computing Revenue Expansion
UBS likewise maintained its Buy recommendation on May 27, establishing a $333 price objective — positioning among the more aggressive projections currently available.
The investment firm refreshed its AWS revenue modeling following Amazon’s first quarter performance that exceeded expectations. UBS currently anticipates AWS generating $175.9 billion in revenue, representing 36% annual expansion — surpassing the Street consensus of $166.6 billion.
UBS further anticipates AWS accumulating $350 billion in contracted backlog through 2026 and subsequent years, highlighting persistent demand for cloud computing infrastructure.
Amazon’s first quarter 2026 performance provided analysts substantial data points. The e-commerce titan delivered EPS of $2.78, significantly exceeding the $1.63 Street consensus. Total revenue reached $181.52 billion, topping projections of $177.28 billion while climbing 16.6% compared to the prior year period.
Institutional Interest Remains Strong
Regarding institutional activity, several funds expanded their AMZN allocations during the fourth quarter. Brighton Jones LLC grew its position by 10.9%, elevating its holdings beyond 4 million shares valued at $885 million. Bank Pictet & Cie Europe AG increased 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 complete AMZN position to $28.3 million. Institutional ownership currently represents 72.2% of outstanding shares.
Wall Street coverage remains decidedly optimistic. Among 60 tracked analysts, 57 maintain Buy ratings while three hold neutral positions. Zero sell recommendations exist.
Benchmark elevated its price objective from $275 to $370 on April 30 — representing the most aggressive target among recent analyst updates.
Potential Challenges on the Horizon
Not everything appears perfectly positioned. Stanley Druckenmiller allegedly reduced his Amazon holdings, a transaction that garnered attention considering his market reputation. The corporation additionally confronts an EU cloud procurement examination that might impact AWS government contracting opportunities, while Ring navigates a class-action privacy complaint concerning facial recognition technology.
Two Amazon executives recently divested shares through established 10b5-1 trading arrangements. Matthew Garman liquidated 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, supporting a market capitalization of $2.76 trillion.
