NEW YORK, July 6, 2026, 10:04 EDT
- Amazon dipped 0.4% at the open. The Invesco QQQ Trust was up 1.3%.
- The stock slipped 1.8% from its peak of the day, cutting about $49 billion from its market cap.
- The average 12-month target from analysts is $315.78, which is around 31% higher than the most recent price.
- Q2 earnings will come out July 30, and Prime Day falls within the quarter.
Amazon.com, Inc. NASDAQ:AMZN slipped at the open Monday on the Nasdaq, bucking gains in the tech sector as Wall Street opened up after being shut for the July 3 Independence Day holiday. The Nasdaq Composite gained 0.65% when markets opened. Invesco QQQ Trust Series 1 NASDAQ:QQQ showed a 1.3% advance in the latest quote. Nasdaq regular hours run from 9:30 a.m. to 4 p.m. ET.
Latest available quotes pointed to mixed action:
| Instrument | Latest price | Change | Intraday high | Gap from high |
|---|---|---|---|---|
| Amazon.com, Inc. NASDAQ:AMZN | $241.67 | -0.4% | $246.19 | -1.8% |
| Invesco QQQ Trust Series 1 NASDAQ:QQQ | $722.21 | +1.3% | $722.83 | -0.1% |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $748.95 | +0.6% | $749.33 | -0.1% |
Amazon wiped out nearly $49 billion in market value from the morning peak after shares dropped back. The stock lagged QQQ by roughly 1.76 percentage points.
The lag is getting attention as some on Wall Street see the AI trade shifting to names like Amazon. Morgan Stanley said Monday it sees investors moving out of chip stocks and into AI “hyperscalers” as spending tilts to data centers. Amazon and Alphabet Inc. NASDAQ:GOOGL were both mentioned. The bank said those hyperscalers could also keep near-term capex in check. Reuters
Estimates show Amazon still has a big gap to close:
| Measure | Forecast / target | Implied move from $241.67 |
|---|---|---|
| Wall Street 12-month average | $315.78 | +30.7% |
| Analyst range | $260-$370 | +7.6% to +53.1% |
| Wells Fargo target, July 2 | $313.00 | +29.5% |
| Q2 EPS forecast | $1.82 | Set to report July 30 |
| Q2 revenue forecast | $196.02 billion | Due July 30 |
If Amazon shares hit the average price target, that’s about $807 billion in extra market cap based on current shares outstanding. Benzinga tracks 40 analyst ratings from the last three months. Wells Fargo kept its $313 target on July 2. Earnings estimates for Q2 and revenue figures are on Benzinga’s earnings page, with results due out July 30.
The focus for Q2 is whether the quarter can support both Prime Day and AI spending. Amazon pushed Prime Day to June 23-26, so it lands in the second quarter. Bank of America, before the event, estimated $21.6 billion in goods sold—up 5% from 2025. eMarketer saw Amazon taking over 60% of sales during the four-day period.
Consumer signals are unclear. William Stern, who heads Cardiff, a small-business lender, told Reuters before Prime Day that, “People just don’t have the cash right now.” He said shoppers were buying fewer big-ticket items and focusing on basics instead. Reuters
U.S. families could spend around $922 for back-to-school shopping this year, Reuters reported on Monday, a 47% jump from 2025. But with food and gas prices higher, more shoppers are looking for bargains. Amazon, Walmart Inc. NYSE:WMT, Target Corp. NYSE:TGT and Best Buy Co., Inc. NYSE:BBY all started sales earlier than normal. Morgan Stanley said in 2025, Amazon and Walmart together took in about 71 cents of every new dollar spent online.
Margins are taking a hit as stores focus on sales. Jeffrey Degner, a research fellow at the American Institute for Economic Research, told Reuters August and September might be “a lower-margin timeframe” for retailers as they push value deals on less trendy school gear. Reuters
AWS is still the main reason for Amazon’s higher multiple, but capex keeps weighing on the story. Amazon reported AWS sales up 28% to $37.6 billion in Q1, with AWS operating income jumping to $14.2 billion. Free cash flow came in at $1.2 billion over the last 12 months, as spending on property and equipment rose by $59.3 billion, linked to AI. CEO Andy Jassy said “AWS is growing 28%” and added that the company’s chip unit hit a $20 billion revenue run rate. ir.aboutamazon.com
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