Amazon(US:AMZN) Zhi Tong Cai Jing·2025-09-25 03:56Core Viewpoint - Wells Fargo upgraded Amazon's rating from "Hold" to "Outperform" due to increased capacity from the Rainier project and improved confidence in AWS revenue growth acceleration in 2026 [1] Group 1: AWS Revenue Projections - The Rainier project, located in Indiana, is expected to generate approximately $14 billion in annual revenue for AWS when fully operational at 2.2GW [1] - Wells Fargo raised its 2026 AWS revenue forecast by 3% and its 2027 forecast by 7% [1] - The firm predicts a 22% year-over-year growth for AWS in 2026, compared to the market's expectation of 18% [1] Group 2: Profit Margin Expectations - Gawrelski anticipates a mild impact of about 50 basis points on the profit margin for 2026 due to the Rainier project [2] - Despite the revenue increase, profit margins are expected to face pressure in 2027, while the market generally expects margins to stabilize at 34.3% in 2026 [2] - As of the latest market close, Amazon's stock fell by 0.23% to $220.21, remaining roughly flat year-to-date [2]