SEATTLE, August 30, 2026, 13:56 EDT
- Amazon shares rose 3.97% to close at $266.43 on Friday, increasing its market value by approximately $110 billion.
- Evercore ISI lifted its price target to $355, indicating potential upside of 33.2%.
- AWS revenue increased by 37%, but trailing free cash flow shifted to negative.
Amazon.com Inc. (NASDAQ: AMZN) rose 3.97% on Friday, boosting its market value by roughly $110 billion.
The stock finished the session at $266.43, with 49.55 million shares traded. Trading volume was nearly in line with its three-month average of 49.13 million market data.
An analyst reevaluation of agent-driven commerce spurred activity on Friday. Evercore ISI increased its price target to $355 from $315.16 and maintained its Buy rating.
The target is 33.2% higher than Friday’s closing level. The consensus remains robust, with 59 Buy ratings, two Holds, and no Sell recommendations.
Some of the optimism is driven by stronger AWS performance. Cloud revenue for the second quarter increased 37% to $42.2 billion Amazon’s results.
AWS generated operating income of $16.6 billion, accounting for 60% of Amazon’s total consolidated operating profit of $27.5 billion.
| Investor measure | Current reading | Comparison |
|---|---|---|
| Friday closing price | $266.43 | up 3.97% |
| AWS revenue for the quarter | $42.2 billion | up 37% from a year ago |
| AWS operating profit | $16.6 billion | up 63% compared to last year |
| Operating cash flow (trailing) | $161.4 billion | increased 33% from a year earlier |
| Free cash flow (trailing) | -$7.6 billion | $18.2 billion positive the prior year |
| Consensus analyst target | $327.67 | 23.0% higher than Friday’s close |
The cash-flow situation offers less leeway. Operating cash flow over the trailing period climbed 33% to $161.4 billion, while free cash flow shifted to a $7.6 billion outflow.
Amazon said the turnaround was largely due to an extra $66.1 billion spent on property, attributing the rise to investments in artificial-intelligence infrastructure SEC filing.
The trade-off is evident. AWS needs to translate current capacity investments into lasting revenue and increased cash returns.
Amazon’s market capitalization closed Friday at about $2.87 trillion. The company’s trailing earnings multiple stands at 21.3, still under the valuation suggested by analysts’ targets.
Management projects third-quarter sales to range between $197 billion and $202 billion, with operating income forecast between $22.5 billion and $26.5 billion.
Risks: Demand for AI may not keep pace with added capacity. Rising costs for energy, chips, or construction might prolong negative free cash flow.
The upcoming confirmed earnings report is set for October 22. Investors are expected to focus on AWS performance, levels of capital expenditure, and the free-cash-flow bridge.
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