Amazon Stock Jumps 5% as Phillip Securities Upgrade Boosts Buy Rating and $330 Price Target

• Amazon stock received a Buy upgrade from Phillip Securities, which raised its price target to $330 from $320
• AWS growth reached 39.3% in Q3 2026, strengthening Amazon’s position in the AI and cloud computing market
• Amazon AI spending remains a concern as free cash flow turns negative, while the Amazon forecast reflects further potential upside according to Wall Street analysts

Amazon stock has been trending on the radar, primarily as the stock gained around 5% in Monday morning trading, banking on its steady AWS growth. In addition to this, Phillip Securities has raised the Amazon stock target following Amazon’s quarterly earnings report, pushing the target to $330 from an earlier $320. This upgrade has come as Amazon Web Services continues to report stronger AWS growth, with demand for AI infrastructure supporting the company’s expansion plans.

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Phillip Securities Upgrade Amazon Stock Forecast

Phillip Securities upgraded Amazon stock to Buy from Accumulate on November 2, raising its target to $330 from $320. The firm believes that strong demand visibility is now helping Amazon’s aggressive expenditure plans. The firm believes that Amazon is presently positioned well in the AI market due to its model-agnostic approach and full-stack capabilities. These include custom chips and partnerships with leading LLM providers.

This upgrade has arrived shortly after Amazon’s quarterly earnings report. The company reported net sales of $201.9B, representing a 12% increase from the same period last year.

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AWS Growth Supports Amazon’s AI Expansion

AWS continues to be the main element driving Amazon’s growth ahead. The cloud division reported $46B in Q3 revenue, up 39.3% YoY. The division also generated nearly $17.8B in operating income. Moreover, Amazon’s CEO Andy Jassy believes that the demand for AWS services may continue to rise, with projected revenue growth rates exceeding 40% in both 2027 and 2028.

This outlook is further supporting Amazon stock, giving it a strong bullish outlook for the future.

However, despite the AWS growth, Amazon AI spending continues to worry investors. The company reported a trailing 12-month free cash flow outflow of $42.4B through September 2026. Moreover, Amazon later shared that much of this decline was due to a $94.8B YoY increase in purchases of property and equipment, primarily to support AI infrastructure development.

Amazon Stock Forecast

According to TipRanks, Amazon’s forecast stands at an average price target of $324.76, with a high of $390 and a low of $230.

“The average price target for Amazon is $324.76. This is based on 44 12-month price targets, issued in the past 3 months. The highest analyst price target is $390.00; the lowest forecast is $230.00. The average price target represents a 35.12% increase from the reference share price of $240.35.”

The comparison with Walmart offers another perspective on Amazon’s stock performance. Between January 1 and November 3, 2026, Walmart shares recorded a 1.10x increase, slightly outperforming Amazon’s 1.06x rise.

As Amazon navigates rising AI investments and focuses on accelerating AWS growth, Walmart’s performance provides a useful benchmark against its retail business, showing how the two major retailers have performed in the stock market this year.

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