NEW YORK, June 29, 2026, 05:06 EDT
- Amazon traded higher premarket after heavy buying drove a bounce on Friday.
- Prime Day sales went up, but the average order size dropped 10.6%.
- Bulls are watching AWS AI pricing for some upside, with capex still putting pressure on free cash flow.
Amazon.com, Inc. NASDAQ:AMZN traded up 0.9% at $234.69 in premarket action as of 5:00 a.m. EDT Monday, adding to a 2.5% jump from Friday. Shares ended Friday at $232.69, with volume at 248.37 million, nearly five times the 65-day average, according to Wall Street Journal data.
Monday is a normal trading day for U.S. equities. The Nasdaq holiday calendar shows the next full market holiday is set for July 3, when markets shut for the Independence Day observance.
Prime Day sales numbers don’t tell the full story. U.S. online shoppers spent over $26.4 billion between June 23 and June 26, Adobe Analytics told Reuters. That’s up 9.3% from last year. Numerator saw more than 178,000 Prime Day orders with an average order size of $47.66, down from $53.34. CFRA analyst Arun Sundaram said tax refunds “could have provided a sizable tailwind.” Sonia Lapinsky at AlixPartners called this a “fatigued consumer” just buying “items that they were going to buy anyway.” Reuters
| Prime Day read-through | 2026 | Comparison | AMZN stock read |
|---|---|---|---|
| U.S. online spend, June 23-26 | More than $26.4 bln | +9.3% y/y | Demand steady |
| Average Prime Day order | $47.66 | Down from $53.34 | Basket dropped 10.6% |
| Electronics discount | 24% | 23% last year | Discounts stayed high |
| Apparel discount | 24% | 23% last year | Pricing power limited |
| Toys discount | 20% | 19% last year | Bigger markdown |
The lower basket changes the margin test for investors. It lets more orders in, which can boost gross merchandise volume, seller fees, and ad inventory. But smaller orders could mean there’s more fulfillment work for each dollar spent if buyers go for essentials and deals.
AWS moved in the other direction. Business Insider said Friday that Amazon Web Services raised prices on EC2 Capacity Blocks for ML by around 20% starting in July, after hiking them about 15% back in January. The AWS pricing page notes reservation prices are updated “regularly based on trends in supply and demand,” with the next change set for July 2026. BCA Research chief economist Peter Berezin said tight GPU supply means cloud vendors have “greater pricing power.” Business Insider Amazon Web Services, Inc.
AWS is still driving most of Amazon’s profits, even as AI investment cuts into cash flow. AWS revenue was up 28% to $37.6 billion in the first quarter, with operating income at $14.2 billion. Free cash flow for the last 12 months dropped to $1.2 billion as Amazon ramped up property and equipment spending by $59.3 billion, mainly into AI. CEO Andy Jassy called AWS’s gain the “fastest growth in 15 quarters.” Amazon
Wall Street hasn’t given up on the stock, it just hasn’t moved. Google Finance lists AMZN’s average 12-month target at $319.24, up 37.2% from the $232.69 reference price. Analyst breakdown: 44 buys, one hold, zero sells. Latest updates kept targets over $300.
| Firm / analyst | Rating action | Target | Implied upside shown |
|---|---|---|---|
| Telsey Advisory / Joe Feldman | Kept Buy, June 26 | $315 | 35.4% |
| Wells Fargo & Co. NYSE:WFC / Ken Gawrelski | Reiterated Buy, June 26 | $312 | 34.1% |
| JPMorgan Chase & Co. NYSE:JPM / Doug Anmuth | Reiterated Buy, June 25 | $330 | 41.8% |
The chart hasn’t cleared up. MarketWatch data had AMZN falling 10.94% in the past month but still higher by 0.81% for the year. The 52-week range spans $196.00 to $278.56. In Monday’s early premarket at 5:00 a.m., shares traded 15.7% under that top.
Cloud capex is the real mover on top of Prime Day. Amazon last week outlined a new $13 billion investment in India by 2030, lifting its total committed spend in the country to $48 billion. Jassy said Amazon would be “investing $48 billion over the coming five years,” and that includes “$21+ billion in AI and cloud infrastructure.” Reuters
| Company | India AI/cloud commitment cited | Time frame |
|---|---|---|
| Amazon.com, Inc. NASDAQ:AMZN | $21+ bln as part of a $48 bln plan for India | Runs through 2030 |
| Microsoft Corporation NASDAQ:MSFT | $17.5 bln | Reuters said pledged |
| Alphabet Inc. NASDAQ:GOOGL Google | $15 bln | Stretched out over five years |
Amazon is set to report Q2 results on July 30. The release will cover the impact of the June Prime Day, and investors will watch for signals on smaller orders, AWS pricing, and AI spending to see if they all fit into Amazon’s current valuation.
