Amazon’s march toward a $3 trillion market valuation has intensified with its stock approaching $275. The surge follows robust first-quarter results, including a significant 28% growth jump for its AWS cloud division. Wall Street analysts project a $500 share price target, though models suggest it may take until 2030 to reach that level.
Amazon shares were quoted at $274.52 in early premarket trading, pushing the company’s market capitalization close to $2.97 trillion. This movement comes after the company reported first-quarter net sales of $181.5 billion, a 17% increase year-over-year.
Its AWS division posted $37.6 billion in Q1 sales, marking its biggest growth jump in 15 quarters with a 28% rise. Net income for the quarter was $30.3 billion, partly boosted by a pre-tax gain of $16.8 billion from Amazon’s investment in Anthropic. Senior analyst Jesse Cohen at Investing.com stated “The significant reacceleration in AWS sales growth is the standout story.”
However, D.A. Davidson’s Gil Luria flagged that Google Cloud’s quicker pace “may be a slight disappointment” for AWS. Wall Street price targets for the next 12 months generally range from $306 to $315, with a high end of $370. According to models featured on Coincodex, the $500 share price range is anticipated closer to 2030, with estimates between $480 and $609 for that year.
The company is also expanding into third-party logistics with Amazon Supply Chain Services. Vice president Peter Larsen said the goal is an impact “much like Amazon Web Services did for cloud computing.” The announcement impacted competitors, with FedEx and UPS each dropping over 9%.
Key risks include a sharp drop in free cash flow to $1.2 billion over the last 12 months, down from $25.9 billion a year earlier. The company has directed heavy spending, including $59.3 billion in property and equipment purchases, largely toward AI.
