Amazon (AMZN) Stock Forecast & Price Target

Amazon.com is projected to achieve total revenue of $803.0 billion in 2026, reflecting a year-over-year growth of 12.2%, with operating and net income estimates also increasing modestly by approximately 1%. The significant growth in Amazon Web Services (AWS), particularly within its AI segment, has contributed to strong momentum, complemented by a favorable retail environment that saw a 4.1% year-over-year increase in sales during December. Additionally, the anticipated operating margin expansion driven by a shift towards AWS and advertising services, along with increased earnings per share projections for the coming years, supports a positive outlook for the company's financial performance.

The outlook for Amazon.com’s stock appears negative due to several concerning financial metrics, particularly within its advertising segment, where the percentage of advertisers increasing spend by 10% or more fell from 48% to 46%, highlighting a potential slowdown in growth. Additionally, a rising number of consumers anticipate decreasing their spending, increasing from 19% to 21%, while expectations for online spending growth have also declined from 43% to 35%. Finally, there is a projected deceleration of approximately 110 basis points in advertising revenue growth, raising concerns about Amazon's ability to maintain its strong position amidst rising operational expenses and competitive pressures.