Amazon.com (AMZN) stock trended lower in Monday’s pre-market trading even as Cathie Wood’s ARK Invest added to its Amazon position. ARK bought 16,550 Amazon shares worth about $4.1 million for its ARK Next Generation Internet ETF (ARKW) on October 2. Meanwhile, Wall Street remains bullish on AMZN, with a Strong Buy consensus and an average price target of $331.82. That target implies about 32% upside from the current price.
Amazon operates an e-commerce business and owns AWS, its cloud computing unit.
Why Cathie Wood Is Buying Amazon Stock
Cathie Wood’s purchase of 16,550 Amazon shares worth $4.1 million adds to ARK’s exposure to Amazon as the company continues to invest heavily in AI and cloud computing. Amazon is also seeing strong demand for AI compute through AWS.
Amazon recently said it expects to spend about $200 billion on capital investments in 2026. Much of this spending is tied to AWS and its data center buildout.
The company is also looking for ways to manage the cost of its AI buildout. Amazon is reportedly considering moving about $8 billion of Nvidia (NVDA) chips into an outside investment vehicle and leasing them back. This could help Amazon free up cash while keeping access to the chips it needs for its AI push.
Analysts’ Views on AMZN Stock
Recently, Wells Fargo analyst Ken Gawrelski reiterated an Overweight rating and a $338 price target for Amazon. The 4-star analyst noted that AWS plans to raise GPU reserve prices by 15% on October 7, following a 20% increase in July. Gawrelski sees the fourth straight price hike as a sign of strong AI demand. He also expects the pricing power to support AWS revenue growth into early 2027.
Likewise, another 5-star analyst Scott Devitt of Rosenblatt is also bullish on AMZN, with a Buy rating and $360 price target. He raised the target from $335, saying Amazon can adapt as AI shopping tools change how consumers find products. Devitt also expects AWS growth to stay strong, with growth above 45% by the end of 2026.
Is AMZN Stock a Buy, Sell, or Hold?
Overall, Amazon stock earns Wall Street’s Strong Buy consensus rating based on 39 Buys and two Holds assigned in the last three months. The average AMZN stock price target of $331.82 indicates 32% upside potential. AMZN stock is up by 8.97% year-to-date.
