Amazon’s Stock: A Dual-Engine Growth Story Takes Center Stage

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All eyes are on Las Vegas this week as the tech behemoth kicks off its flagship annual event. However, the buzz isn't solely from the conference itself; a surprisingly bullish call from Wall Street is adding significant fuel to the narrative. The central question for investors is whether this combination of new AI ambition and a substantial price target upgrade will finally ignite the stock's long-awaited rally.

The most significant development for shareholders comes from the research firm Oppenheimer. While some market participants express concerns about a growth slowdown, the firm's analysts are charting a decidedly different course. They have reaffirmed their "Outperform" rating on Amazon while dramatically raising their price target to $305 per share.

This optimistic stance is rooted in a deep examination of the Amazon Web Services (AWS) cloud division. Oppenheimer's team anticipates that Amazon will double its cloud capacity by 2027. Their projections indicate that the fourth quarter alone will see the addition of "at least" one gigawatt of new capacity. The underlying calculation is both straightforward and substantial: historically, each added gigawatt has represented approximately $3 billion in revenue potential. According to the analysts, these massive earnings opportunities for 2026 and 2027 do not yet appear to be reflected in current consensus estimates.

The Cloud Battle Intensifies in Vegas

Coinciding with this analyst move, the "AWS re:Invent 2025" conference commenced on Tuesday. Market attention is fixed on AWS CEO Matt Garman and his keynote address. The expectation is nothing short of proof that the company's colossal investments in AI infrastructure are beginning to yield returns. A key focus is "Agentic AI," described as a new generation of artificial intelligence capable of autonomous decision-making.

Strategically, Amazon aims to defend its cloud dominance against rivals Microsoft Azure and Google Cloud. The company is showcasing new partnerships for video processing and tools designed to modernize legacy code, aiming to demonstrate practical, concrete applications of its latest technology for customers.

Technical and Seasonal Tailwinds

Beyond the cloud-centric narrative, Amazon's core retail operations are entering a critical period. Although broader expectations for the holiday retail season remain muted, Amazon is employing aggressive discounting to defend market share. The company is leveraging its AI-driven logistics network as a key competitive advantage during this high-volume quarter.

From a chart perspective, the equity is showing signs of stabilization following a challenging period. After a recent pullback, the shares have steadied and are trading above the significant 50-day moving average, at just over €201. Investors are increasingly positioning for the possibility that Amazon can successfully fire on both cylinders—its high-margin cloud business and its cash-generative commerce engine—simultaneously.