Amazon (AMZN) Stock — Evercore Names It Top Pick for 2026

TLDR

• Evercore ISI reiterates an Outperform rating and $285 price target on Amazon (AMZN)
• AWS revenue projected at $163B in 2026 (27% growth) and $214B in 2027 (31% growth)
• Amazon named Evercore’s #1 large-cap long idea for 2026, with stock trading near a 3-year P/E low
• Total Amazon revenue and operating income estimates raised 2–3%, sitting 4–5% above Street consensus
• Capex expected to reach ~$250B by 2027, with ~$10B in free cash flow losses projected each year

Evercore ISI analyst Mark Mahaney reiterated an Outperform rating on Amazon.com (AMZN) on Wednesday, keeping his $285 price target in place. The stock currently trades around $208.76, which implies roughly 37% upside to that target.

Amazon.com, Inc., AMZN

Mahaney named Amazon his “#1 large-cap long idea for 2026,” citing valuation, cloud growth, and newer business initiatives as key reasons for his confidence.

The call came after a fresh review of Amazon Web Services, the company’s cloud division. Evercore now projects AWS revenue will hit $163 billion in 2026, up 27% year-over-year, and climb to $214 billion in 2027, reflecting 31% growth.

On the margin side, Evercore sees AWS operating margins at 34% in 2026, dipping slightly to 32% in 2027. These are healthy numbers and reflect the continued scale of the cloud business.

Evercore also lifted its broader Amazon estimates. Revenue and operating income forecasts were raised by 2–3%, putting them 4–5% above current Wall Street consensus. That’s a meaningful gap.

Valuation and Upside Case

One of Mahaney’s central arguments is that Amazon is cheap right now — at least by its own historical standards. The stock is trading near a three-year trough on a price-to-earnings basis, with a current P/E of 29.11 and a PEG ratio of 0.98. That PEG number suggests the market may not be fully pricing in the growth ahead.

Evercore also pointed to newer company initiatives, including Project Leo and Perishable Checkout, as potential upside drivers that could start contributing more meaningfully in 2026.

BofA Securities also has a Buy rating on the stock, with a $275 price target, following Amazon’s recent rollout of 1-hour and 3-hour delivery options in multiple U.S. cities.

Capex Is the Overhang

The big concern here is spending. Evercore expects Amazon’s capital expenditures to ramp to around $250 billion by 2027, which is substantial. The firm projects about $10 billion in free cash flow losses in both 2026 and 2027 as a result.

Capex intensity — measured as capex as a percentage of revenue — is expected to peak in 2026, though Evercore noted it could extend into 2027. That’s a real drag on near-term cash generation.

Despite that, Mahaney’s view is that this risk is already priced into the stock at current levels, and the overall risk-reward still looks favorable.

On the broader corporate front, Amazon recently raised $36.9 billion through a debt offering across multiple maturities, and also completed a €14.47 billion euro-denominated note sale. Jeff Bezos is separately reported to be in talks to raise $100 billion for a new fund targeting manufacturing companies and AI-driven automation.

As of the most recent data, 40 out of 43 analysts covering AMZN have a Buy rating, with the average price target sitting at $280.00 per share.

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