Wall Street analysts are reporting growing optimism regarding Amazon.com Inc. (AMZN) shares ahead of the company’s Q3 financial report scheduled for October 29. The primary growth catalyst is Amazon Web Services (AWS), whose revenue surged 36.7% year-over-year to $42.2 billion in Q2. Spurred by surging demand for AI infrastructure, analysts at Bank of America and BNP Paribas expect AWS growth to accelerate to 40–45% in Q3, significantly above consensus estimates.

The key concern for investors remains the company’s massive capital expenditure on data center infrastructure and specialized AI hardware. Amazon is on track to spend approximately $220 billion in cash capital expenditures in 2026, which has already pushed free cash flow to negative $7.6 billion for the 12 months ended June 30. CEO Andy Jassy emphasizes that these investments are structured for long-term returns, though the market is seeking proof that these huge outlays will not erode profit margins.

Despite capital expenditure risks, leading investment banks—including Goldman Sachs and Morgan Stanley—have added Amazon to their lists of top stock picks. The company’s shares currently trade at 19 times projected 2026 earnings, which are forecast to surge by 80%. AMZN stock has gained roughly 10% so far this year, demonstrating resilience across the broader tech sector.

Wall Street’s consensus rating on Amazon stock remains a “Strong Buy,” with 47 out of 56 covering analysts recommending a buy. The mean price target of $330.18 suggests potential upside of about 29% from current levels, while the bullish price target of $405 implies upside potential of up to 59%.