We're raising our price target on Amazon after its all-around killer quarter

Shares of Amazon rose after the tech giant reported stronger-than-expected first-quarter results, driven by a continued acceleration of growth in its Amazon Web Services unit. Revenue increased 17% year over year to $181.52 billion, beating the consensus analyst estimate of $177.3 billion, according to LSEG data. Earnings per share based on generally accepted accounting principles (GAAP) increased 75% to $2.78, beating the $1.64 estimate, per LSEG. However, it's not a great comparison because the results included pre-tax gains of $16.8 billion in non-operating income related to the company's investment in Anthropic. Operating income increased 30% year over year to $23.85 billion, beating the $20.82 billion consensus forecast. Why we own it Amazon may be widely known for online shopping, but its cloud business is the real breadwinner. Advertising is another fast-growing business with high margins. Investment in robust e-commerce logistics infrastructure makes its online storefront the place to be. Prime offers free shipping, video streaming, and tons of other perks to keep users paying every month. Competitors : Walmart , Target , Microsoft , and Alphabet Most recent buy : April 15, 2025 Initiated : February 2018 Bottom line After a slow start to 2026, Amazon stock has come back to life, gaining roughly 26% in April to new all-time highs. …