As Amazon.com, Inc. (NASDAQ: AMZN) sees a notable growth rate in Amazon Web Services (AWS) sales, Justin Post, an analyst at Bank of America Corp. (NYSE: BAC), has reiterated a bullish position.
Post maintained a Buy rating on AMZN stock in a note to clients analyzed by Finbold on July 23. He also reaffirmed the bank’s 12-month price target for Amazon at $310, thereby implying a 26.6% upside.
“The analyst reiterates a Buy rating and $310 PT, expressing confidence in Amazon’s Q2 performance, particularly the re-acceleration of AWS growth,” the note reads.
BofA raised its second-quarter revenue estimate for Amazon to $198.8 billion and earnings before interest and taxes to $24.1 billion, both above Wall Street’s consensus. The firm also lifted its AWS sales growth forecast to 33 percent year-over-year, a 5 percentage point acceleration from the first quarter.
Post said AMZN stock’s bullish outlook is bolstered by robust demand for Anthropic-related revenues and OpenAI models powering Amazon Bedrock. Additionally, the analyst expects AWS operating margins to expand to 34% on a year-over-year basis, supported by strong capacity utilization and improved pricing power.
Nonetheless, the bank pointed to key headwinds likely to impact AMZN stock. He said the company may increase its 2026 capital expenditure outlook to as high as $210 billion due to rising memory costs. Meanwhile, Post expects AWS margins may contract sequentially in the second quarter as stock-based compensation expenses rise.
Is AMZN a good stock to buy?
Ahead of the July 30 Amazon earnings call for the second quarter of 2026, Post noted that cloud sector results from the company’s major peers are expected to heavily influence investor expectations. Alphabet Inc. (NASDAQ: GOOGL) reported on July 22, while Microsoft Corporation (NASDAQ: MSFT) is scheduled to follow on July 29.
Following Post’s bullish sentiment for AMZN stock, 46 analysts surveyed by TipRanks have issued an average Strong Buy rating for the company. These analysts have set an average 12-month price target for Amazon stock at $318.98, suggesting a potential 30.27% upside.
