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Wedbush Reiterates Outperform on Amazon (AMZN) Ahead of Earnings

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Gaining Attention on Wall StreetOn January 30, Wedbush analyst Dan Ives reiterated an Outperform rating on the stock with a $340.00 price target. The firm sees robust AWS momentum for AMZN, robust Q4 setup, and a $25.2B OI forecast reinforcing multiple expansion potential.

The rating affirmation comes ahead of the company’s fourth-quarter earnings report scheduled for Thursday, February 5. Webush believes that investor confidence has been building, and Amazon’s previous quarter report has had sentiment turn more positive.

“AWS growth was well ahead of expectations, and we are encouraged by the implied level of AWS demand given the pace of backlog growth and additional supply coming online over the next twelve months.”

The firm further said that it believes 2026 is going to be a big year for AWS, potentially serving as a catalyst for shares. With shares trading for ~22x our 2027 GAAP EPS estimate, it believes the risk-reward is attractive ahead of fourth quarter.

“We believe another robust quarter of AWS growth and continued proof points from partners could be the key to drive multiple expansion in the coming quarters.”

Overall, Wedbush is constructive on the setup leading into the report due to positive commentary around AWS growth, healthy trends for the core retail business, and robust advertiser demand.

It has raised its estimates for Amazon, projecting fourth-quarter operating income of $25.2 billion (11.8% margin), an estimated 1% above consensus. Meanwhile, it expects operating income of $103.0 billion (12.8% margin) for the full year.

“Amazon remains our top eCommerce pick for 2026, and we reiterate our Outperform rating and $340 PT.”

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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