Canaccord Genuity has reaffirmed its Buy recommendation on Amazon.com Inc., maintaining a $300.00 price target after the company posted fourth-quarter results that modestly beat expectations for both revenue and operating income. The $300.00 target implies substantial upside from the prevailing share price of $222.69 and sits alongside a consensus analyst rating of 1.32, classified as Strong Buy.
According to InvestingPro data referenced in the company note, Amazon is trading below its Fair Value estimate, indicating potential upside for investors who view the shares through a longer time horizon. Canaccord’s stance is rooted in the performance of Amazon Web Services, which it identifies as the primary focal point for investors.
Canaccord highlighted that AWS growth accelerated by roughly 400 basis points quarter-over-quarter, following a 300 basis-point acceleration in the prior quarter. The firm also noted that AWS benefited in the quarter from the addition of 1GW of power capacity, which Amazon says was the largest power addition by any company worldwide during the period. That continued strength at AWS contributes to Amazon’s total trailing twelve-month revenue of $716.92 billion, a year-over-year increase of 12.38%.
Looking ahead, Amazon plans to substantially scale capital spending, projecting about $200 billion in capital expenditures for 2026, with the majority earmarked for AWS. Management cited several reasons supporting the large investment figure: a meaningful dollar contribution from mid-twenties percentage growth on a revenue run rate above $140 billion, the ability to monetize AI capacity as it is installed, and AWS’s experience in forecasting demand and capacity needs.
Data from InvestingPro included in Canaccord’s outlook characterized Amazon as trading at a low price-to-earnings ratio relative to near-term earnings growth, noting a PEG ratio of 0.6. That valuation metric is presented as part of the case that the company can justify substantial growth-oriented investments.
However, the company’s near-term guidance introduced mixed signals. While Amazon’s revenue outlook for the first quarter came in line with expectations, management’s operating income guidance was about 90 basis points below consensus at the midpoint. The elevated capital expenditure projection for 2026 has spurred investor concern about the balance between near-term returns and longer-term capacity-driven growth.
Canaccord Genuity interprets the market’s response to those signals as overlooking the current efficiency of AWS’s scaling efforts and recommends viewing price weakness as an attractive entry point for investors with a multi-year perspective.
Amazon’s reported fourth-quarter 2025 results showed a slight miss on earnings per share but a revenue outcome that exceeded expectations. Revenue finished slightly above the high end of the company’s guidance, and operating income topped consensus by 1% despite including $2.4 billion of one-time expenses.
Analyst reactions to the results varied. BMO Capital raised its price target to $310, citing AWS’s growth rate of 24% that outpaced Street expectations. Citizens analyst Andrew Boone retained a Market Outperform rating and a $315 price target, pointing to the mix of results across the company. Conversely, Goldman Sachs lowered its price target to $280, attributing the move to an extended investment cycle across cloud computing and e-commerce.
These analyst updates underscore the tension between Amazon’s sizable, front-loaded investment program and the continued revenue and operating-income dynamics driven in large part by AWS. Canaccord’s reiteration of Buy and its view that a pullback represents an opportunity reflect an investment thesis focused on the long-term returns from scaling cloud capacity and monetizing installed AI infrastructure.
Investors weighing Amazon here confront a familiar trade-off: near-term pressure on margins and operating income guidance against the prospect of durable, capacity-driven revenue growth anchored in AWS. For those with a multi-year horizon, Canaccord recommends considering current weakness as a potential entry point; for others, the elevated capex path and its near-term impact on operating metrics remain a source of caution.