24/7 Wall St. Sets Amazon $343.50 Target as AWS Growth Hits 36.7%

1 articles · Updated · 24/7 Wall St. · Aug 23

$343.50 is 24/7 Wall St.'s new price target for Amazon, implying 32.8% upside from $259.39 and backing a buy rating with 90% confidence.
Q2 results drove the call: revenue rose 19.62% to $200.61 billion, operating income jumped 43.24% to $27.46 billion, and AWS grew 36.7%—its fastest pace in 18 quarters.
AWS backlog reached $496 billion, while Amazon's AI and chips businesses each topped a $25 billion annualized run rate and advertising revenue climbed 26% to $19.81 billion.
The main risk is spending: Q2 capex surged 68.44% to $54.21 billion, trailing free cash flow turned negative $7.6 billion, and 2026 capex is projected near $200 billion.
24/7 Wall St. argues Amazon's forward P/E of 23 still looks reasonable versus Alphabet at 17 and Microsoft at 24, with a bull case of $393.98 and bear case of $293.37.