Amazon Sees AWS Growth Above 40% in 2027, 2028, Wedbush Says

MT Newswires Live10-30 23:22

Amazon.com (AMZN) reported Q3 revenue in line with expectations and a strong operating income beat, while setting up Amazon Web Services for more than 40% growth in 2027 and 2028, Wedbush Securities said in a Friday note.

AWS revenue accelerated for a sixth straight quarter, rising 39% year over year to $46 billion, while the AWS backlog increased by $82 billion to $578 billion, providing "strong visibility" behind the growth outlook, the firm said.

Cash capital expenditures reached $77.3 billion in the quarter, driven by AWS and artificial intelligence spending, resulting in a free cash flow outflow of $33.5 billion.

Amazon maintained its 2026 cash capital expenditure outlook at about $220 billion, while management expects 2027 spending to be "meaningfully more."

Wedbush reiterated its outperform rating on Amazon and cut its price target to $298 from $310.

Amazon shares were 1.9% lower in early Friday trading.

Price: 239.17, Change: -4.62, Percent Change: -1.90

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