Amazon.com (AMZN) PT Lowered to $380 at StoneX

StoneX analyst Daniel Kurnos lowered the price target on Amazon.com (NASDAQ: AMZN) to $380.00 (from $400.00) while maintaining a Buy rating.

The analyst commented, "It was an eventful 3Q print for Amazon.com (AMZN: Buy, PT from $400 to $380) as shares did what we argued they would in our October 25th industry preview, where we flagged an artificial ceiling as long as free cash flow stayed increasingly negative and the funding question went unanswered; both remain true. The quarter itself was excellent. Revenue of $201.9 billion was in line, operating income of $28.1 billion beat the Street by 7.1% and cleared the top end of Amazon's own guidance by $1.6 billion, and the 13.9% operating margin was the highest in the Company's history. Then CEO Andy Jassy said out loud AWS would grow over 40% for the next two years. Somehow that was disappointing, and drove wild upward revisions to 2027 CapEx expectations on commentary the 2027 CapEx growth would be “meaningful,” furthering the unfunded narrative. 4Q26 operating income also brackets a midpoint below consensus, although most of Amazon Leo's costs are still expensed this quarter, the Company is absorbing a $1.5 billion-plus pay increase alongside 300,000 seasonal hires, and fuel and line haul inflation runs higher than in 3Q. We are taking our 2027 numbers up materially and the target multiple down to 15x, moving the price target to $380, to reflect investor unwillingness to pay for funding question marks. Shares look ridiculously cheap on our out-year estimates but may need the funding answer to break out of the current range."

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