TD Cowen Remains Optimistic about Amazon (AMZN), Anticipates Several Growth Opportunities Through 2026

Amazon.com, Inc. (NASDAQ: AMZN) continues to attract attention from analysts tracking AI-related stocks. On December 10, TD Cowen's John Blackledge reaffirmed a Buy rating on Amazon with a $300 price target, highlighting it as the firms leading pick among large-cap internet companies. This confidence is driven by structural advantages in artificial intelligence, strong advertising performance, and anticipated margin improvements.

TD Cowen outlined three primary factors expected to support Amazons stock through 2026:

• Accelerated AWS Revenue Growth: Amazon Web Services (AWS) is projected to see revenue growth pick up in the fourth quarter of 2025, continuing into 2026 and 2027. This surge is attributed to growing demand for core and AI workloads and increased AI infrastructure capacity.
• Momentum in Retail and Advertising: Amazons retail operations are expected to expand in 2026, fueled by faster delivery times, growth in same-day perishable offerings, and strategic investments in rural markets. Additionally, advertising revenue is forecasted to grow in the high teens percentage year-over-year, driven by sponsored products, the demand-side platform, and the expanding Prime Video ad business.
• Ongoing Margin Expansion: TD Cowen anticipates Amazons operating income in 2026 to reach $104 billion, approximately 4% above consensus, translating to a 12.8% GAAP operating margin. High-margin segments such as AWS and advertising, alongside efficiencies in eCommerce, are expected to contribute to this growth.

Amazon.com Inc. is a leading American technology company providing e-commerce, cloud computing, digital streaming, and AI-powered solutions. While Amazon presents significant investment potential, some analysts suggest other AI-focused stocks may offer higher upside with reduced downside risk.

Sources:

• TD Cowen Stays Bullish on Amazon (AMZN), Sees Multiple Growth Drivers Into 2026