Amazon stock potential is increasingly linked to the company’s cloud-computing arm, Amazon Web Services (AWS). Analysts believe AWS will continue to be a significant driver of cash flow and profitability for Amazon.com, Inc. (NASDAQ:AMZN). Recently, Oppenheimer raised its price target for AMZN stock from $290 to $305, citing AWS capacity doubling by 2027 and $3 billion revenue potential per incremental gigawatt.

AWS’s expansion reinforces Amazon stock potential, with growing capacity translating directly into higher revenue and operating margins.

Amazon Stock Performance Overview

Headquartered in Seattle, Amazon is a global leader in e-commerce and cloud computing. Beyond online retail, AWS has become the key cash-flow engine for the company. For Q3 2025, Amazon reported $180.2 billion in revenue, up 13% year-over-year, with AWS contributing $33 billion, a 20% increase YOY.

This performance has contributed to AMZN stock rising 13% in the past six months, reflecting investor confidence in both e-commerce resilience and cloud-driven growth.

AWS: The Cash Flow Engine

AWS not only drives top-line growth but also delivers high profitability. While North America and international segments reported $147.2 billion in revenue with an operating margin of 4.1%, AWS posted $33 billion in revenue and $11.4 billion in operating income, yielding a 34.5% margin.

In the past 12 months, AWS added 3.8 gigawatts of capacity, and plans to double this by 2027 suggest continued Amazon stock potential. Furthermore, Amazon recently committed $50 billion to AI and supercomputing for U.S. government customers, setting the stage for revenue and margin expansion over the next 24–36 months.

Strong Cash Position Supports Expansion

Amazon’s financial strength underpins its growth plans. Operating cash flow reached $130 billion over the past year, with a cash buffer of $94.2 billion as of Q3 2025. This ensures that major investments, including AI, cloud expansion, and logistics upgrades, are fully funded. These investments are expected to drive both revenue growth and shareholder value, reinforcing Amazon stock potential for long-term investors.

Global Expansion Fuels Amazon Stock Potential

International markets accounted for 23% of Q3 2025 revenue, with strong growth prospects ahead. In Brazil, India, Japan, and other regions, initiatives such as Prime Video advertising are yielding tangible results.

Amazon is also expanding its logistics and automation network in Europe, investing 700 million euros to enhance delivery speed and reduce costs. In the United Kingdom, a $54 billion investment over three years is planned to build new warehouses and upgrade existing operations.

In India, Amazon plans to open two new dark stores daily for its quick-commerce arm, highlighting its aggressive approach in emerging markets. These global initiatives further enhance Amazon stock potential, signaling robust long-term growth.

Analyst Consensus on AMZN Stock

Amazon stock potential is strongly endorsed by Wall Street. Among 57 analysts, the consensus rating is “Strong Buy”, with 49 analysts assigning that rating. Six analysts rate it a “Moderate Buy” and two as “Hold.”

The mean price target of $296.78 implies a 27% upside, while the most bullish target of $360 suggests a 54% potential gain. Analysts also forecast 29.66% earnings growth for FY 2025, with a forward P/E ratio of 32.4, indicating attractive valuation levels relative to expected growth.

Conclusion: Amazon Stock Potential Remains Compelling

In summary, Amazon stock potential is supported by multiple growth drivers: AWS expansion, AI and supercomputing investments, and aggressive global market penetration. With strong cash flow, high operating margins from AWS, and continued product innovation, Amazon.com, Inc. (NASDAQ:AMZN) is well-positioned for long-term value creation.

Investors seeking exposure to cloud computing, AI, and international e-commerce growth may find AMZN stock a compelling opportunity. With analyst support and clear paths for revenue and margin expansion, Amazon stock potential appears robust, offering significant upside in the coming years.

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