Wedbush Reiterates Outperform on Amazon (AMZN) Ahead of Earnings

Core Viewpoint - Amazon.com, Inc. is gaining attention on Wall Street, with Wedbush analyst Dan Ives reiterating an Outperform rating and a price target of $340, driven by strong AWS momentum and a positive outlook for Q4 earnings [1][4]. Group 1: Earnings Forecast - The fourth-quarter earnings report is scheduled for February 5, with Wedbush projecting an operating income of $25.2 billion, which is 1% above consensus, and a margin of 11.8% [2][5]. - For the full year, the estimated operating income is $103.0 billion with a margin of 12.8% [5]. Group 2: AWS Growth - AWS growth has exceeded expectations, with positive sentiment driven by backlog growth and additional supply expected in the next twelve months [2][4]. - Wedbush anticipates that 2026 will be a significant year for AWS, potentially acting as a catalyst for Amazon's stock [4]. Group 3: Investment Sentiment - Investor confidence in Amazon has been building, supported by positive commentary around AWS growth and healthy trends in the core retail business [4]. - The risk-reward profile for Amazon shares is considered attractive, trading at approximately 22 times the 2027 GAAP EPS estimate [4].