Amazon Stock Popped on Earnings. Options Data Tells Us AMZN Could Be Headed Here Next.

Core Insights - Amazon's shares are experiencing significant gains following a strong performance from its Amazon Web Services (AWS) division, which reported a 20% year-over-year growth in Q3, marking the strongest quarterly growth in three years [1] - The company's Q3 results exceeded analysts' expectations, contributing to a more than 50% increase in AMZN stock compared to its year-to-date low in April [2] Financial Performance - Bank of America has raised its price target for Amazon stock to $303, suggesting a potential upside of nearly 25% from current levels [4] - Amazon is trading at a forward earnings multiple of 33x, which is considered compelling compared to other AI beneficiaries like Nvidia, which is at about 49x [4] Market Sentiment - Options traders are optimistic about Amazon's stock trajectory, with contracts indicating potential upside to approximately $270 by January and a near-term target of $254 by November 7 [5] - Barchart has issued an overall "Buy" opinion on Amazon, noting that the stock has significantly breached the 38.2% Fibonacci retracement level, indicating bullish control [6] Analyst Ratings - Wall Street analysts have rated Amazon as a 'Strong Buy' heading into 2026, with a consensus target price of $269, indicating an additional potential upside of 10% [7][8]