Key facts
- Amazon stock is trading below the consensus price target of $312.52.
- Wolfe Research reaffirmed an Outperform rating and $320 price target on May 29.
- Amazon launched Supply Chain Services on May 4, targeting a market valued over $1.2 trillion.
- UBS reaffirmed a Buy rating with a $333 price target, projecting AWS revenue of $175.9 billion.
- Amazon reported Q1 EPS of $2.78, beating estimates, and revenue of $181.52 billion.
- Institutional investors own 72.2% of Amazon's stock.
Amazon (AMZN) stock is trading below Wall Street's average price target of $312.52, with analysts maintaining a bullish outlook. On May 29, Wolfe Research reaffirmed its Outperform rating and $320 price target, highlighting the launch of Amazon Supply Chain Services on May 4. This new division targets a market estimated at over $1.2 trillion, encompassing freight, US shipping, distribution, and international parcel delivery. UBS also reaffirmed its Buy rating on May 27 with a $333 price target, projecting AWS revenue to reach $175.9 billion, a 36% year-over-year increase, and anticipating AWS backlog growth to $350 billion by 2026. Amazon's first-quarter results exceeded expectations, with EPS of $2.78 (vs. $1.63 consensus) and revenue of $181.52 billion (vs. $177.28 billion expected). Institutional investors collectively own 72.2% of the stock, with several funds increasing their stakes in the fourth quarter. Of 60 tracked analysts, 57 rate AMZN a Buy. However, potential headwinds include a reported reduction in Stanley Druckenmiller's position, an EU cloud procurement review impacting AWS contracts, and a class-action privacy lawsuit against Ring. Two Amazon CEOs also recently sold stock.