Amazon (NASDAQ: AMZN) received an upbeat endorsement from Stifel after reporting stronger-than-expected third-quarter results. The brokerage raised its price target on Amazon shares from $269 to $295 while maintaining a Buy/Outperform rating, citing accelerating momentum in Amazon Web Services (AWS) and the company’s advertising segment.
AWS revenue surged 20% year over year — its fastest growth since 2022 — with margins exceeding analyst estimates. Stifel noted that AWS’s quarterly acceleration outpaced both Microsoft Azure and Google Cloud, underscoring Amazon’s renewed strength in enterprise AI and cloud infrastructure.
Amazon’s fourth-quarter revenue guidance also topped expectations. Management expects full-year capital expenditures to come in roughly 6% above consensus, driven by expanded AI infrastructure, increased Trainium chip production, and enhanced logistics capacity.
Stifel analysts backed Amazon’s investment ramp-up, pointing to robust momentum in high-margin segments such as AI applications, same-day delivery, and expanding Rufus and Alexa+ services. The firm added that Amazon’s operational discipline and execution heading into the holiday season should further reinforce its market leadership.