Key Moments
- Jefferies raised its Amazon.com (NASDAQ:AMZN) price target to $300.00 from $275.00 and reiterated a Buy rating.
- The new target suggests significant upside from Amazon’s current price of $226.50, with the stock trading around 12x 2026 EV/EBITDA.
- Jefferies expects Amazon’s operating margin to rise to 12.3% in 2026 from 11.2% in 2025, even as total revenue growth slows slightly.
Revised Target and Valuation Context
Jefferies raised its price target for Amazon.com (NASDAQ:AMZN) to $300.00, up from $275.00, while keeping a Buy rating. This new target points to notable upside from the current trading level of $226.50. Analysts see this as consistent with a broadly favorable view on the stock. The consensus recommendation rating is 1.33, where 1 equals Strong Buy.
Amazon shares gained 5% in 2025, compared with a 16% rise in the S&P 500. In Jefferies’ view, this underperformance makes the stock attractively priced at roughly 12x 2026 EV/EBITDA.
AWS Momentum and AI Positioning
Jefferies expects investor sentiment to improve as Amazon Web Services (AWS) accelerates growth and the company expands its artificial intelligence capabilities. AWS revenue growth rose from 17% in H1 2025 to 20% in Q3 2025. The firm forecasts growth in the mid-20% range in 2026. Segment margins are expected to stay in the mid-30s.
Although some investors believe Amazon lags behind Microsoft and Google in AI, Jefferies argues the company’s cloud infrastructure leadership positions AWS to become a major provider of AI development and inferencing tools for enterprises.
$AMZN setup into 2026 👇
✅ Gross profit continues to compound
✅ Operating margins are trending higher
✅ Over 1M robots already operating across logistics
✅ Automation replacing labor → structurally lower costs
✅ Heavy capex already deployed into fulfillment + data centers… pic.twitter.com/cjMZJA2hj1— Marian Pompura | ETFs & Stocks (@equity_by_mp) January 5, 2026
Revenue and Margin Outlook
Jefferies expects total revenue growth to slow to about 10% in 2026 from 12% in 2025. However, operating margins should continue improving, rising to 12.3% from 11.2% in 2025. Efficiency gains are expected to drive this improvement.
| Metric | 2025 | 2026 (Forecast) |
|---|---|---|
| Total revenue growth | ~12% | ~10% |
| Operating margin | 11.2% | 12.3% |
| AWS revenue growth (H1) | 17% | Mid-20s% (projected) |
| AWS revenue growth (Q3) | 20% | – |
Amazon is scheduled to release earnings on January 29, 2026. Additional financial analysis is available through the InvestingPro Pro Research Report.
Developments Around Amazon and Related Entities
Amazon’s autonomous driving unit, Zoox, is recalling 332 vehicles in the U.S. due to a software issue in its Automated Driving Systems. The National Highway Traffic Safety Administration warned that the malfunction could cause vehicles to cross lanes or stop in front of oncoming traffic.
Separately, Target, Whole Foods, and Walmart may face lawsuits in connection with ByHeart, a baby formula producer. The complaints relate to potentially contaminated formula that could cause botulism.
Blue Origin, AI Initiatives, and Equity Outlook
Blue Origin, founded by Jeff Bezos, appointed Tory Bruno, former CEO of United Launch Alliance, as president of its National Security Group. Bruno will oversee national security projects at the space company.
The U.S. Department of Energy launched the Genesis Mission, a collaboration of 24 organizations using AI to advance scientific research and national security. This initiative aligns with President Trump’s AI Action Plan to strengthen U.S. scientific capabilities.
On the equity market, Erste Group remains constructive on U.S. stocks. It expects earnings growth for U.S. companies to accelerate to 15% year-over-year in 2026.
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