Citizens' **** yst Andrew Boone recently reiterated a Market Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) with a $315 price target. The firm noted that Amazon trades at 23.8x 2027E GAAP EPS and 10.9x 2027E EBITDA. However, it believes that the stock deserves to trade at a higher valuation.
Citizens believes that two factors support a higher valuation for Amazon.com, Inc. (NASDAQ:AMZN), one of which is its cloud computing leadership through Amazon Web Services. AWS is currently the undisputed leader in cloud infrastructure with an estimated 28% of market share.
In the second quarter of 2026, AWS net sales grew 37% year-over-year to $42.2 billion. Operating income for the segment grew to $16.6 billion from $10.2 billion a year ago. This means that AWS accounted for an estimated 60% of Amazon's operating income while contributing one-fifth of revenue.
AWS is now essentially a "$169 billion annualized revenue run rate business," with the company now building a narrative around their custom silicon. The business has a chips revenue run rate "over $25 billion," and an AI-specific revenue run rate also "over $25 billion."
On the retail side, North America segment sales rose 16% to $$116.2 billion. Operating income climbed to $9.1 billion, supported by the company's efficient fulfillment network.

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