Analysts Raise Amazon Price Target 34% Ahead of Quarterly Earnings

Amazon's shares fell about 4.6% to $233.66 ahead of its second‑quarter earnings report, yet the average analyst price target sits at $313—roughly 34% above the current price and a strong‑buy consensus. Analysts cite the company's $200 billion capital‑expenditure plan through 2026, focused largely on artificial‑intelligence infrastructure, as the main driver of valuation. Free cash flow has dropped sharply to $1.2 billion in the trailing twelve months, down from $25.9 billion a year earlier, reflecting a $59.3 billion rise in spending.

Revenue from Amazon Web Services grew 28% year‑over‑year to $37.6 billion in the first quarter, marking its fastest growth in 15 quarters, which analysts view as a key offset to the heavy spending. The stock also faces pressure from a Senate investigation into alleged Chinese influence over its marketplace. Together, these factors create a wide gap between the market price and analyst expectations as investors weigh growth prospects against rising costs.