Prediction: Amazon Stock Could Be Poised for Its Next Big Rally in 2027 Vandita Jadeja Tue, November 10, 2026 at 12:33 PM EST 4 min read AMZN Trade AMZN 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 (AMZN) needs a 38% gain to hit $350 in 2027, and analysts' consensus target already implies 29% upside from today's price.
AWS grew 39% last quarter, its fastest pace in nearly five years, and the CEO says it can top 40% growth in 2027 and 2028.
Capex near $220 billion this year, with meaningfully more coming in 2027, is the biggest hurdle to the rally.
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Amazon (NASDAQ:AMZN) has never looked more like a cloud and AI company that also happens to run the world's biggest store. AWS revenue grew 39.3% last quarter, the fastest pace in nearly five years. Shares trade at $254.13, up 10.1% year-to-date even after a 4.47% pullback today. That drop followed a hyperscaler rally on the election results (CNBC).
The chief executive is thinking much bigger: "There has never been a trillion dollar revenue business, and we may have two of them in the next 5-10 years." Here is what Amazon needs to do to hit $350 in 2027.
The consensus price target of $326.74 implies 28.6% upside. Analysts are close to unanimous, with 16 Strong Buy and 42 Buy ratings against just 2 Holds. They expect 2027 revenue of about $950 billion, or 14.6% growth.
The 2027 EPS estimate has rose to $10.5805 from $10.4079 90 days ago. Q1 2026 was the fifth consecutive quarter that Amazon cleared the EPS bar, and Q2 beat again. Q3 then missed by 3.47%.
Today Amazon trades at about 24x 2027 earnings. At $350, the multiple would rise to roughly 33x. It's a premium, but it buys a cloud business with a 38.7% operating margin and a $578 billion backlog.
Several factors could drive Amazon to $350.
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AWS acceleration: The CEO said "AWS can grow north of 40% in each of 2027 and 2028."
Trainium goes external: Amazon plans to sell chips outside AWS starting in late 2027, and OpenAI committed to about 2 GW of Trainium capacity starting next year.
Retail margins: North America operating income rose to $8.72 billion from $4.79 billion, which helped push the company-wide margin to a record 13.9%.
Advertising rebound: Management expects ad growth to return to the high teens in Q4.
Rising estimates: Upward revisions to 2027 EPS outnumbered down ones 4 to 1 in the last 30 days.
The main hurdle is spending. Capex is running at about $220 billion for 2026, with "meaningfully more in 2027" on the way, and trailing free cash outflow stands at $42.4 billion.
That capex wave has to be powered, cooled, and connected by somebody, which is why we pulled together seven suppliers riding the data-center expansion in a free report you can grab here.
Reaching $350 requires a 37.7% gain. Amazon has topped that in 11 calendar years since 2000.
Shares rose 44.4% in 2024, 80.9% in 2023, 76.3% in 2020 and 117.8% in 2015. At a market cap near $2.75 trillion, matching those runs is harder. Still, the stock has done it before.
Hitting $350 would take a 37.7% gain from today's price. Wall Street already sees 28.6% upside, estimates are rising, and AWS is guiding to faster growth.
Heavy capex and a volatile market could slow the climb. If AWS clears 40% and Trainium sales take off, $350 is within reach. Returns at this level shouldn't be expected every year, but we've outlined the plan for how Amazon could see outsized returns in 2027.
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