Is Amazon (AMZN) a Must-Buy Stock with the Strongest 1Q2026 Earnings Beats?

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 Must-Buy Stocks with the Strongest 1Q2026 Earnings Beats.

On May 1, 2026, Baird raised its price target on Amazon.com, Inc. (NASDAQ:AMZN) to $300 from $285 and maintained an Outperform rating after updating its model following Q1 results, noting AI-driven acceleration.

Raymond James also increased its price target on Amazon.com, Inc. (NASDAQ:AMZN) to $280 from $225 with an Outperform rating, citing 28% AWS growth that came in slightly below expectations. The firm said AI partnerships and expanding agentic capabilities across models, tools, and compute strengthen AWS’s long-term positioning and support higher RPO expectations. Meanwhile, BofA lifted its price target to $310 from $298 and kept a Buy rating after a “solid” retail performance, noting AWS grew 28% year over year, accelerating from Q4 and exceeding the 25% consensus, alongside a margin beat and backlog growth.

Is Amazon (AMZN) a Must-Buy Stock with the Strongest 1Q2026 Earnings Beats?

On April 29, 2026, Amazon.com, Inc. (NASDAQ:AMZN) reported Q1 EPS of $2.78 versus $1.65 consensus and revenue of $181.5B compared to $177.17B expected. CEO Andy Jassy said the company is seeing “significant growth,” highlighting 28% AWS growth, a chips business exceeding a $20B run rate, advertising revenue above $70B on a trailing basis, and 15% unit growth in Stores. Amazon expects Q2 revenue of $194.0B to $199.0B, versus the $188.86B consensus, with operating income projected between $20.0B and $24.0B.

Amazon.com, Inc. (NASDAQ:AMZN) operates retail, advertising, and subscription businesses through online and physical stores across North America and international markets.

While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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