Amazon Turned $10,000 Into More Than $230,000. Can It Happen Again? Vandita Jadeja Wed, October 7, 2026 at 11:30 AM EDT 5 min read AMZN +1.17% MSFT -0.12% GOOG -0.14% WMT +0.88% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Amazon stock carries a BUY rating with a $329 price target, implying 31% upside, driven by AWS revenue surging 37% to $42 billion.
Microsoft's Azure backlog hit $678 billion while Alphabet's Google Cloud grew 82%, making Amazon's 35 P/E look stretched against higher-margin rivals.
Amazon plans $200 billion in 2026 capex as free cash flow collapsed 66%, creating the biggest risk to the bull case.
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Amazon (NASDAQ:AMZN) is one of the great compounders of the modern market. In the last decade, shares rose 503%, turning $10,000 into about $60,300. The 24/7 Wall St. price target for Amazon is $328.86 over the next 12 months.
Amazon gets a buy rating with 70% confidence from our model. I read that as solid conviction, held back somewhat by real uncertainty around the AI spending cycle.
Three things drive the rating: faster cloud growth, almost unanimous analyst support, and a valuation that leaves room to run if AWS continues growing.
Over the past week, shares are up 0.72%. They are down 1.38% over the past month and up 8.94% year to date. The stock trades 12.4% below its 52-week high of $287.20 and 28.3% above its low of $196.
Q2 revenue came in at $200.61 billion, ahead of the $196.43 billion estimate and up 19.6% year over year. GAAP EPS of $5.75 beat expectations of $1.82, including a $53.4 billion pre-tax gain tied mostly to Anthropic. AWS revenue rose 37% to $42.23 billion, with backlog reaching $496 billion. For Q3, Amazon guided net sales to $197 billion to $202 billion.
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The bull case runs through AWS. Its AI business and its custom chip business each run at more than $25 billion a year with triple-digit growth. Anthropic and OpenAI have both made multi-gigawatt Trainium commitments.
On the July 30 call, CEO Andy Jassy said AWS could "very possibly be a trillion dollar annual revenue business for us in time." Advertising brings high-margin growth: $19.81 billion in the quarter, up 26%.
Analysts rate the stock 15 Strong Buy, 43 Buy, and only 2 Hold. Firm-level targets were not available. Our bull case reaches $378.33.
Amazon plans about $200 billion in 2026 capex. Q2 spending reached $54.21 billion, up 68.44% year over year. FY2025 free cash flow fell 65.95% to $11.19 billion, and long-term debt rose to $119.1 billion.
All of that expansion has to be powered, cooled, and networked by someone, and we rounded up seven of those suppliers in a free report on the AI infrastructure trade. Management says most 2027 capacity is already reserved, and servers break even in under three years and last five to six years. The bear case comes out at $283.12.
Microsoft (NASDAQ:MSFT) is AWS's closest rival. Its commercial backlog reached $678 billion, and it trades at a lower multiple than Amazon due to far higher margins.
Alphabet (NASDAQ:GOOGL) faces the same capex tradeoff. Q2 free cash flow was negative $5.855 billion, and a $99.03 billion equity gain boosts its low P/E.
Walmart (NASDAQ:WMT) is the retail contrast. Its advertising revenue grew 38%, yet investors pay a higher multiple for slower total growth. Against this peer group, our target looks reasonable.
The 24/7 Wall St. price target of $328.86 comes with a buy rating and 70% confidence. AWS growth has sped up for five straight quarters.
That argument strengthens if AWS continues growing above 30% and capex turns into free cash flow in 2027. On balance, the evidence points to upside.
The 24/7 Wall St. price target model projects Amazon could trade at these levels, assuming current growth trends hold.
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