Prediction: Amazon Stock Could Be Poised for Its Next Big Rally in 2027
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Amazon (NASDAQ:AMZN | AMZN Price Prediction) has never looked more like a cloud and AI company that also happens to run the world’s biggest store. AWS revenue grew 39.3% last quarter, the fastest pace in nearly five years. Shares trade at $254.13, up 10.1% year-to-date even after a 4.47% pullback today. That drop followed a hyperscaler rally on the election results (CNBC).
The chief executive is thinking much bigger: “There has never been a trillion dollar revenue business, and we may have two of them in the next 5-10 years.” Here is what Amazon needs to do to hit $350 in 2027.
Wall Street Already Sees Big Upside for Amazon
The consensus price target of $326.74 implies 28.6% upside. Analysts are close to unanimous, with 16 Strong Buy and 42 Buy ratings against just 2 Holds. They expect 2027 revenue of about $950 billion, or 14.6% growth.
The 2027 EPS estimate has rose to $10.5805 from $10.4079 90 days ago. Q1 2026 was the fifth consecutive quarter that Amazon cleared the EPS bar, and Q2 beat again. Q3 then missed by 3.47%.
Here’s the Math Behind $350 Per Share
Today Amazon trades at about 24x 2027 earnings. At $350, the multiple would rise to roughly 33x. It’s a premium, but it buys a cloud business with a 38.7% operating margin and a $578 billion backlog.
Several factors could drive Amazon to $350.
- AWS acceleration: The CEO said “AWS can grow north of 40% in each of 2027 and 2028.”
- Trainium goes external: Amazon plans to sell chips outside AWS starting in late 2027, and OpenAI committed to about 2 GW of Trainium capacity starting next year.
- Retail margins: North America operating income rose to $8.72 billion from $4.79 billion, which helped push the company-wide margin to a record 13.9%.
- Advertising rebound: Management expects ad growth to return to the high teens in Q4.
- Rising estimates: Upward revisions to 2027 EPS outnumbered down ones 4 to 1 in the last 30 days.
The main hurdle is spending. Capex is running at about $220 billion for 2026, with “meaningfully more in 2027” on the way, and trailing free cash outflow stands at $42.4 billion.
That capex wave has to be powered, cooled, and connected by somebody, which is why we pulled together seven suppliers riding the data-center expansion in a free report you can grab here.
Amazon’s History Says $350 Is Possible
Reaching $350 requires a 37.7% gain. Amazon has topped that in 11 calendar years since 2000.
Shares rose 44.4% in 2024, 80.9% in 2023, 76.3% in 2020 and 117.8% in 2015. At a market cap near $2.75 trillion, matching those runs is harder. Still, the stock has done it before.
$350 Is a Stretch, but the Path Is Clear
Hitting $350 would take a 37.7% gain from today’s price. Wall Street already sees 28.6% upside, estimates are rising, and AWS is guiding to faster growth.
Heavy capex and a volatile market could slow the climb. If AWS clears 40% and Trainium sales take off, $350 is within reach. Returns at this level shouldn’t be expected every year, but we’ve outlined the plan for how Amazon could see outsized returns in 2027.
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Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
