Telsey Previews Amazon.com (AMZN) Earnings

Telsey analyst Joe Feldman reiterated an Outperform rating and $315.00 price target on Amazon.com (NASDAQ: AMZN).

The analyst comments "TAG View: We expect generally inline sales growth of ~17.5% and slightly higher operating income growth of ~24% vs. the FactSet consensus (FS) of 22.5%, driven by the ongoing strength of online spending, gains from the expansion of new products, brands, and categories, benefits from faster fulfillment, including same-day delivery, and strong demand for AWS cloud and AI-related services. In addition, the timing shift of 2026 Prime Day (June 23-26, 2026 vs. July 8-11, 2025) should boost 2Q26 results. Profits should be enhanced by the ongoing growth of higher-margin categories and services, such as advertising, media, and AWS (boosted by AI-related upgrades), offset by the higher costs associated with the rapid build-out of AI capabilities. We expect these healthy business trends to continue in 2026, as reflected in our annual sales growth of ~13% and operating income growth of ~24%. TAG Thesis: Amazon should continue to gain market share by leveraging its sticky Prime member base, small business relationships, and technological edge. Amazon's ability to fuel key growth opportunities—grocery, private brands, pharmacy, logistics, ads, and AI—should make it more valuable. Amazon is capitalizing on and investing in the rapid build-out of AI to drive long-term profitable growth. We maintain our Outperform rating and 12-month price target of $315, based on applying an EV/ EBITDA multiple of ~16x to our 2026 EBITDA estimate of ~$208B."

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $249.99 yesterday.

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