Amazon is flat today after a strong week that saw it hit an all-time high, and it remains about 12 percent higher than it was a month ago. We think this is just a quiet session after a big run-up, as the stock is holding steady while the broader market rises slightly.
Our view
Cloud growth is accelerating again and the company's own AI chips are becoming a major source of revenue. If you already own the stock, there is nothing to do here but keep holding a very strong business.
Zoox, the self-driving car company owned by Amazon, will begin charging fares for rides in Las Vegas on August 10. This marks the first time the business will earn revenue from the public after previously offering only free test rides.
While this is a small start compared to the company's retail and cloud arms, it is a major step toward making its multi-billion dollar investment in autonomous cars pay off. Moving from testing to a paid service shows the technology is reliable enough to compete with traditional ride-sharing and other robotaxi rivals.
Major data center upgrade to support advanced AI models
Amazon is overhauling its data center campus in Indiana to give its artificial intelligence teams more computing power. The upgrade is designed to support the development of frontier models, which are the most advanced and capable versions of AI.
This move shows that despite cutting some jobs in its AI division last month, the company is still spending heavily to build its own technology. By upgrading its own facilities, Amazon can run these powerful models on its own chips, which helps it avoid paying high fees to outside hardware makers.
Company newsFor the record
Aug 7
Local pushback over quiet $2 billion data center project
Amazon spent years working with officials in Gilroy, California, to plan a $2 billion data center that few residents knew about until construction started. Now that the project is public, some locals are pushing back against how the deal was handled. This is a minor hurdle for a company that is spending roughly $200 billion this year on infrastructure. While local disputes can slow down specific projects, they rarely change the overall pace of the company's massive expansion into AI and cloud computing.
Amazon Pharmacy to offer $50 weight-loss drugs for Medicare patients
Amazon's pharmacy unit is launching a new program to provide weight-loss drugs to Medicare beneficiaries for a flat $50 monthly fee. This move uses a federal bridge program designed to make these high-demand treatments more accessible to older adults.
This is a smart way for Amazon to grow its healthcare business. By making it easier and cheaper for a large group of people to get these drugs, the company is building a reason for more customers to use its pharmacy service instead of a traditional drugstore.
Lawsuit claims Amazon sold protein powder with toxic metals
A lawsuit claims Amazon should have known that certain protein powders sold on its site contained toxic heavy metals. The case argues the company failed to protect shoppers from these products. While these types of product liability suits are common for a marketplace of this size, they highlight a recurring challenge. Amazon often argues it is just the middleman, but regulators and courts are increasingly looking at whether the company should be held responsible for the safety of everything it lists.
Amazon analyst price targets
A large group of analysts recently reaffirmed their positive outlooks and raised their price targets for Amazon. Most analysts, 84 out of 94, rate the stock a buy, with the average target suggesting a 19% gain from today's price.
Average target$329.07+19%vs $275.77 today
TodayAvg price
Low $300High $390
Strong Buy94 analysts
1Bearish
9Neutral
84Bullish
FirmRatingPrice TargetDate
Roth Capital
—
$300→$325
8/3/2026
RBC Capital
Outperform
$320→$330
7/31/2026
Deutsche Bank
—
$315→$325
7/31/2026
Raymond James
—
$280→$390
7/31/2026
Wedbush
Outperform
$293→$310
7/31/2026
KeyBanc
Overweight
$335→$350
7/31/2026
Rosenblatt Securities
Buy
$345
7/31/2026
Cantor Fitzgerald
Overweight
$330→$320
7/31/2026
Wells Fargo
Overweight
$322→$328
7/31/2026
Mizuho Securities
Outperform
$330
7/31/2026
UBS
Buy
$305→$318
7/31/2026
Robert W. Baird
—
$300→$310
7/31/2026
Amazon earnings
The company has beaten profit estimates for seven of the last eight quarters, often by a wide margin. Management is consistently under-promising and then outrunning even the most bullish expectations.
Earnings history
EstimateBeatMiss
Amazon past earnings results
Expected
Actual
Surprise
EPS
$1.82
$5.75
+215.9%
Revenue
$197.03B
$200.61B
+1.8%
Key highlights
Cloud growth accelerating: AWS revenue grew 37% to $42.2 billion, marking its fastest growth in 18 quarters. The cloud division now brings in money at a $169 billion annual rate, showing that the core engine for company profit is picking up speed as businesses adopt new technology.
Artificial intelligence scaling fast: The company reported its artificial intelligence business reached a $25 billion annual revenue run rate, growing at triple-digit percentages over last year. This rapid adoption suggests that the heavy spending on data centers is starting to turn into meaningful sales from customers like Anthropic and OpenAI.
Custom chip business booming: The specialized computer chips that the company designs itself reached a $25 billion annual revenue run rate. This matters because 98% of the top 1,000 cloud customers now use Graviton chips, which can be up to 50% more cost-effective than standard options, helping to lock customers into the company's hardware.
Advertising and logistics strength: Advertising revenue grew 26% while the company delivered over 40% more items same-day or overnight compared to last year. These results show the retail business is becoming more efficient, especially in grocery and essentials where speed is the main reason customers choose to shop.
Heavy spending on infrastructure: Spending on property and equipment rose by $66.1 billion over the last year, which caused free cash flow, the cash left over after bills and investments, to drop to a $7.6 billion outflow. Management is prioritizing these investments in artificial intelligence over immediate cash savings to capture long-term market share.
Our take: A very strong quarter that shows the company's massive investments in artificial intelligence and custom chips are paying off earlier than many expected. While the heavy spending caused a temporary cash outflow, the 37% growth in the cloud business is a powerful signal that the long-term profit story is getting even better.
Amazon’s next earnings date
Q3 2026
OCT
29
Expectation
EPS
$1.96
Revenue
$201.84B
Metrics we are tracking
Metric
Expectations
Status
AWS Revenue Growth
Sustaining growth above 22% year-over-year
37% YoY in Q2 2026
Advertising Revenue
Reaching $85 billion on a trailing twelve-month basis