NEW YORK, June 26, 2026, 09:05 (EDT)
- Amazon dropped under the bottom WSJ/FactSet analyst price target Thursday. 71 out of 73 ratings for the stock are still Buy or Overweight.
- Shares fell 3.1% on volume of 77.86 million, which was roughly 68% higher than the 65-day average.
- Prime Day wraps up Friday, falling within Amazon’s Q2 guidance window. Bank of America sees $21.6 billion in sales for the event.
- AWS is facing more challenges, this time as the EU looks at tougher cloud rules and Amazon moves ahead with a $13 billion AI and cloud investment in India.
Amazon.com, Inc. (NASDAQ:AMZN) heads into the last Prime Day session Friday with its shares trading under the bottom of analysts’ target range, after a cloud-driven slump sent the stock sliding below Wall Street models.
Amazon shares finished Thursday at $227.01, a drop of 3.10%. WSJ, citing FactSet, had the stock’s lowest price target at $230, a median at $319.50, and the average at $316.56. So the median price target is about 41% higher than where the stock closed. FactSet counted 59 Buys, 12 Overweights and two Holds, with zero Underweights or Sells.
Amazon lost around $79 billion in market value on Thursday, with the $2.47 trillion company hit by the per-share drop. Shares traded at $227.50 in the premarket at 8:40 a.m. EDT, inching up 0.2% ahead of the 9:30 a.m. Nasdaq open.
Amazon is about 18.5% off its 52-week high at $278.56 from May 5. Investor’s Business Daily noted Thursday’s drop put the stock under its 200-day moving average, something that hasn’t happened since April as shares of cloud hyperscalers got hit.
Amazon is betting on Prime Day to gauge demand. The company shifted the sale to June 23-26 and said in April it was expecting Prime Day in the second quarter. Amazon’s outlook for the period is net sales between $194 billion and $199 billion, with operating income of $20 billion to $24 billion.
Bank of America is looking for $21.6 billion in goods sold at the 96-hour event, a 5% gain over 2025. Adobe sees shopper spending passing Black Friday and Cyber Monday 2025 together. Reuters said eMarketer has Amazon grabbing over 60% of the four-day sales.
The details behind the number are what people are watching. “People just don’t have the cash right now,” William Stern, CEO of Cardiff, told Reuters. Shoppers focused on basics this time, not on big-ticket items. Reuters
Investors still have questions about margins. Amazon said its first-quarter free cash flow dropped to $1.2 billion from $25.9 billion a year ago. The company blamed higher property and equipment purchases, up by $59.3 billion, mostly for AI spending. AWS sales climbed 28% to $37.6 billion. AWS operating income came in at $14.2 billion, making up about 59% of total operating income.
EU antitrust regulators on Tuesday said Amazon Web Services and Microsoft Corp.’s (NASDAQ:MSFT) Azure must be treated as digital gatekeepers under the Digital Markets Act, setting up new rules around self-preferencing, interoperability and data portability. AWS pushed back, with a spokesperson calling it just “another layer of overlapping regulation” that would damage European competitiveness. Reuters
Amazon said Thursday it’s putting another $13 billion into AI and cloud infrastructure in India by 2030. That’s in addition to $35 billion it announced for India last year. CEO Andy Jassy told investors Amazon is spending $48 billion over five years, with “$21+ billion” going to AI and cloud infrastructure. Reuters
The stock faces a tougher tape now as tech duration risk draws less leniency. Reuters said Friday the S&P 500 is up over 7% in 2026, but the Nasdaq Composite is heading for a down week, with investors watching chip stocks and waiting for next week’s U.S. jobs report. “If we do get a really good jobs number,” Doug Huber, deputy chief investment officer at Wealth Enhancement, said, “the market could treat it as proof ‘the economy’s hot.’” Reuters
Next up is Amazon’s second-quarter earnings, scheduled for July 30, according to WSJ. Analysts tracked there are holding at $1.81 per share for the current quarter, flat from last month.
