"AWS grew 28% year over year, the fastest pace in 15 quarters, the chips business crossed a $20 billion annual run rate, and EPS came in at $2.78 versus a $1.73 estimate."
"Despite Q1 results that CFO Brian Olsavsky framed around a 13.1% operating margin, the highest ever, shares have given back recent gains. Momentum has cooled. The MACD histogram flipped negative on May 11 and deepened to -2.0243 by May 15, while RSI dropped from 81.1 on May 6 to 58.6 in nine sessions."
"Two overhangs explain it. First, Berkshire Hathaway fully exited its Amazon position in Q1 2026, a headline that traveled. Second, free cash flow has collapsed under a $200 billion 2026 capex plan, with $43.2 billion spent in Q1 alone. With a beta of 1.468, AMZN amplifies every macro wobble."
"Reaching $375 from today's price of $264.14 requires a gain of 42%. With forward EPS of roughly $8.22 (derived from the 32 forward P/E), a price of $375 implies a forward P/E of 46x. The consensus target of $311.55 implies roughly 38x, meaning the bold target requir"
AWS grew 28% year over year at the fastest pace in 15 quarters. The chips business reached a $20 billion annual run rate. Earnings per share came in at $2.78 versus a $1.73 estimate. Despite a 13.1% operating margin, shares closed at $264.14 on May 15. Momentum indicators weakened, with MACD histogram turning negative and RSI falling from 81.1 to 58.6. Two overhangs were cited: Berkshire Hathaway fully exited its Amazon position and free cash flow declined under a $200 billion 2026 capex plan, including $43.2 billion spent in Q1. A $375 target would require about a 42% gain and a higher forward P/E than consensus implies.
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