Stifel left its Buy rating and $300.00 price target on Amazon.com (NASDAQ:AMZN) unchanged following the company's fourth-quarter report and subsequent guidance. The research house highlighted revenue that topped estimates and pointed to multiple operational strengths even as management set ambitious spending plans for 2026.
In its note, Stifel emphasized Amazon's fourth-quarter performance, where overall revenue beat expectations and Amazon Web Services showed material acceleration. AWS growth accelerated by 400 basis points versus prior pacing and outperformed consensus, a result Stifel attributed in part to increased demand from both AI and traditional workloads. Advertising was also described as slightly healthier than recent trends suggested.
Amazon's first-quarter outlook was characterized as somewhat soft by Stifel, in part because company guidance includes an incremental $1 billion in Leo-related costs year-over-year. Management also signaled sharply higher capital expenditures for 2026, forecasting approximately $200 billion in capex, which the firm noted equates to roughly 150% year-over-year growth.
Despite incorporating the heavier spending into its models, Stifel pointed to a set of constructive metrics supporting its continued positive stance. The firm called out custom silicon as achieving a run-rate greater than $10 billion annually, and highlighted that next-generation Trainium is expected to begin shipping in 2027. AWS backlog rose 38% year-over-year, and North America operating margins continued to widen, expanding by 100 basis points.
After adjusting estimates to reflect the elevated 2026 spending plans, Stifel maintained its $300 price target and reiterated Amazon as one of its top picks, recommending accumulation at prevailing prices.
Other brokerages reacted to Amazon's aggressive capex guidance with a mix of lowered price targets and sustained positive ratings. Cantor Fitzgerald trimmed its target to $250 while retaining an Overweight rating. Scotiabank reduced its target to $275 and kept a Sector Outperform rating. TD Cowen moved its target to $300 and maintained a Buy rating. RBC Capital reiterated an Outperform rating, praising AWS performance but noting capex concerns. Telsey Advisory Group kept an Outperform rating with a $300 target, citing ongoing growth opportunities across Amazon's businesses.
Amazon's fourth-quarter results showed revenue approximately 1% above analyst expectations and EBIT coming in about 9% higher than forecast. AWS revenue grew 24% year-over-year, a figure Stifel and others linked to contributions from AI workloads as well as non-AI demand. The combination of stronger-than-expected near-term results and a large, upfront spending plan for 2026 has left analysts balancing operational momentum against elevated investment levels.