UBS lowered its Amazon stock price target to $305 from $333 and kept a Buy rating as Amazon.com Inc heads toward its July 30 second quarter 2026 results. The change gives investors a fresh read on how UBS sees AWS and spending shaping the stock before earnings arrive.
UBS and Amazon.com Inc
UBS said it still expects continued strength from Amazon Web Services and improving e-commerce profitability. That combination helped keep the Buy rating in place even as the firm trimmed its valuation target.
The revision also reflects UBS’s view that higher capital expenditures in 2027 and beyond will pressure the numbers. UBS tied that to rising component costs and increased demand for infrastructure, which lifts spending even when revenue trends stay strong.
AWS Growth Outlook
UBS forecast Amazon Web Services revenue growth of 36% in 2026 and 48% in 2027. It also said the market is underestimating AWS backlog and revenue growth potential in the second half of 2026 and into 2027.
UBS moved OpenAI’s initial use of Amazon’s Trainium chips from the fourth quarter of 2026 into early 2027, a shift it said took about $3 billion in revenue out of 2026. That change is part of why the target came down even with a bullish call still attached.
July 30 Results
UBS estimates Amazon’s 2027 operating income will be approximately 49% above current Street expectations. For investors, that leaves the immediate focus on how July 30 results line up with the stronger AWS outlook and the higher spending path UBS is now building in.
