Amazon.com, IncNasdaq: AMZN
Consumer Discretionary · Broadline Retail
$268.12
+1.15%
Vol: 173.8M
Research Digest
Friday, May 1, 2026
Amazon crushes Q1 earnings with EPS of $2.78 vs. $1.63 expected; AWS growth accelerates to 28% on AI demand
Amazon reported Q1 2026 earnings with EPS of $2.78 crushing consensus of $1.63, and revenue of $181.5B topping estimates by ~$4B. AWS cloud revenue grew 28% (fastest in 15 quarters) driven by AI demand. Custom chips business surged past $20B annual run rate with triple-digit growth, backed by commitments from OpenAI and Anthropic. Amazon Autos expanded from Hyundai-only launch to five brands across 130+ U.S. cities, targeting $1.3T market. Stock surged post-earnings despite 95% collapse in free cash flow to $1.2B due to $59B AI capex surge. Citron set $300 PT, Needham raised to $300.
Previous Market Intelligence
13 daysApr 30Amazon beats Q1 earnings with $181.5B revenue and 28% AWS growth; raises Q2 guidance and capex to $200BPositive▶
Amazon reported Q1 2026 revenue of $181.5B (+17% YoY), beating estimates of $177.3B, with EPS of $2.78 versus $1.64 consensus. AWS grew 28% YoY to $37.59B, its fastest growth in 3+ years, while online stores revenue reached $64.3B (+12% vs $62.7B est) and advertising jumped 24% to $17.24B. The company raised Q2 guidance to $194-199B versus $188.9B consensus and announced capex will reach $200B in 2026, reflecting massive AI infrastructure investment. Meta struck a multi-billion dollar AWS deal involving Graviton chips for AI workloads, and Amazon acquired Globalstar for $11.6B satellite services. Multiple analysts raised price targets citing improved AWS outlook and AI growth acceleration. Main risk is execution on $200B capex and potential margin compression from infrastructure investment.
Apr 29Amazon Q1 beats: EPS $2.78 vs $1.64 est, AWS revenue $37.59B (+28%), gains OpenAI resale rights after Microsoft cedes exclusivityPositive▶
Amazon crushed Q1 expectations with EPS $2.78 vs $1.64, revenue $181.52B vs $177.30B. AWS grew 28% YoY to $37.59B (fastest growth in 3+ years, beat 26% estimate). Free cash flow fell sharply to $1.2B from $25.9B due to $59.3B AI infrastructure capex surge. Key win: Microsoft dropped exclusive OpenAI resale rights, allowing Amazon to offer ChatGPT on AWS. Meta awarded AWS Graviton chips deal. Analysts at BMO, UBS, Oppenheimer raised price targets citing AWS acceleration.
Apr 16Amazon acquires Globalstar for $11.6 billion to expand satellite network and build 3.5 GW compute capacity for AI infrastructurePositive▶
Amazon announced acquisition of satellite operator Globalstar for $11.6 billion on April 14, 2026, expanding its satellite communications capabilities and synergizing with Apple's connectivity needs. CEO Andy Jassy revealed AWS AI revenue surpassed $15 billion annualized run rate in Q1 2026, with custom chip business (Graviton, Trainium) exceeding $20 billion annual run rate and showing triple-digit growth. The company committed $25 billion to Mississippi data center expansion for AI workload capacity. Enterprise beta for satellite internet launched April 8. Wells Fargo lifted price target to $305 and maintains Overweight rating, naming Amazon top internet pick. Q1 2026 earnings call scheduled for April 29.
Apr 15Amazon acquires Globalstar for $11.6 billion to boost Leo satellite internet service; stock gains 3.6% amid strong AWS AI growth with $15B+ run ratePositive▶
Amazon announced acquisition of Globalstar for $90/share ($11.6 billion total) on April 14, 2026, strengthening its Leo satellite internet service to compete with Starlink. Amazon Leo entered Enterprise Beta April 8. Stock surged 3.6% and is on its strongest 7-day run in nearly 4 years. CEO Andy Jassy revealed AWS AI revenue run rate exceeded $15 billion in Q1 2026. Company faces $200 billion capex commitment for 2026.
Apr 14Amazon Leo satellite internet enters Enterprise Beta; Delta Air Lines partnership targets 2028 in-flight WiFiPositive▶
Amazon Leo entered Enterprise Beta on April 8, competing with SpaceX Starlink. Partnership with Delta for in-flight WiFi starting 2028. AWS launched NVIDIA Blackwell GPU instances.
Apr 13Amazon AWS AI revenue reached $15B annualized run rate; shares jumped 4.5% on strong AI business plus Eli Lilly GLP-1 partnershipPositive▶
Amazon shares rose 4.5% after CEO Andy Jassy revealed AWS AI business hit $15B+ annualized revenue in annual letter. Company partnered with Eli Lilly for same-day GLP-1 (Foundayo) delivery via Amazon Pharmacy. Stock traded between $233.54-$240.43 on April 12, currently at $238.40. AWS AI momentum and strategic pharma partnerships driving investor optimism. Stock up 2.02% on April 10 with 5 consecutive days of gains. Risk: Execution on AI monetization and pharmacy operations profitability.
Apr 10Amazon surges 5.5% on CEO Jassy's AWS AI announcement revealing $15B annualized revenue run rate plus $200B capex plan.Positive▶
Amazon jumped 5.48% April 9 after CEO Andy Jassy revealed AWS AI services reached $15B annualized revenue run rate. Company also disclosed annual revenue run rate of $20B+ for chip business. $200B capital expenditure plan sparked investor debate. Project Kuiper satellite internet launching late April 2026. AWS grew 24% in Q4 2025 with Bedrock seeing rapid adoption. Amazon pharmacy partnered with Eli Lilly for same-day GLP-1 pill delivery.
Apr 9Amazon Prime Video price increase effective April 10; plans $200B capex, expanding AI and same-day pharmacyPositive▶
Amazon announced Prime Video Ultra will launch April 10 with pricing increase from $2.99 to $4.99 monthly or $45.99 yearly. The company is executing aggressive AI and cloud expansion with planned capex up to $200 billion by 2026. Same-day prescription delivery is expanding to nearly 4,500 US cities, adding 2,000 new communities. Amazon signed a $138 billion, eight-year AWS partnership with OpenAI strengthening its AI position. The company is developing an AI smartphone (Transformer) with Alexa integration. 92% of covering analysts maintain constructive stance with consensus price target of $285, implying over 35% upside.
Apr 8Amazon secures renewed USPS delivery agreement for 1B+ packages and partners with Delta for in-flight Wi-Fi.Positive▶
Amazon stock up 0.46% to $213.77. Renewed U.S. Postal Service agreement ensures delivery of over 1 billion packages annually. Partnership with Delta for in-flight Wi-Fi competes with Starlink. $200B AI investment announced alongside strong AWS growth. Q1 2026 earnings scheduled for April 23. 45 analysts rate AMZN Strong Buy with consensus target $278.82.
Apr 7Amazon reaches USPS deal retaining 80% of current deliveries; secures $50B OpenAI partnership and plans $200B AI investmentPositive▶
Amazon reached new USPS agreement maintaining ~80% of current deliveries (>1B packages/year). Company announced $200 billion AI investment and partnered with OpenAI: Amazon to invest $50B in OpenAI over 8 years; OpenAI commits to use AWS Trainium capacity. Amazon planning same-day prescription delivery to 4,500+ U.S. cities by 2026. Adding 3.5% fuel/logistics surcharge for sellers. Stock trades at $211.87 with strong analyst sentiment. TD Cowen and Tigress Financial both raised targets to $315. Analysts cite advertising growth, AWS expansion, and healthcare initiatives as key drivers.
Apr 6Amazon launches Health AI agent, expands same-day prescription delivery to 4,500 cities; in talks to acquire Globalstar for $9B.Positive▶
Amazon launched Health AI agent with free 24/7 virtual care for Prime members. Expanded same-day Rx delivery to 4,500 cities. Amazon-Delta brings satellite internet to flights in 2028. New 3.5% fuel surcharge on third-party sellers. In advanced talks to acquire satellite operator Globalstar for $9B. Workplace injuries down 43% since 2019. Trading at $209.78.
Apr 3Amazon imposes 3.5% fuel surcharge on sellers; pursues Globalstar acquisition to expand satellite internet capabilities.Positive▶
Amazon is implementing a 3.5% fuel surcharge effective April 17 for third-party sellers due to rising logistics costs. The company is in acquisition talks with Globalstar Inc. to strengthen low-Earth orbit satellite internet ambitions, competing against SpaceX. Amazon also announced a $50 billion multi-year investment in OpenAI partnership. Delta Air Lines signed a deal to deploy Amazon Leo satellite Wi-Fi to 500 aircraft starting 2028. Analyst ratings remain bullish with Wells Fargo and Tigress Financial raising targets.
Apr 1Amazon announces Prime Business Card and Amazon Business Card launching this spring; stock rises 3.64% on strategic partnerships and AI expansion.Positive▶
On March 31, 2026, Amazon announced new Prime Business Card and Amazon Business Card products launching this spring, offering cash back to small business customers. AMZN stock rose 3.63% on positive momentum from expanded AWS partnership with OpenAI and other strategic initiatives. Fourth-quarter 2025 advertising revenues reached $21.3 billion, up 22% year-over-year. Amazon is investing $200 billion in AI infrastructure for 2026, expected to depress free cash flow. The stock trades at $208.27 with forward P/E of 24.64X versus industry average 20.47X.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| AMZNAMAZON.COM | $268.12 | +1.15% | +24.6% | 27.1x | 1.38 | $2.85T |
| EBAYEBAY | $105.08 | +1.55% | +5.9% | 15.4x | 1.33 | $46.4B |
| TSLATESLA | $390.70 | +2.38% | +8.2% | 150.5x | 1.92 | $1.43T |
| HDHOME | $324.45 | -1.32% | +0.7% | 20.2x | 1.08 | $327.5B |
| MCDMCDONALD | $287.01 | -2.24% | -5.2% | 20.4x | 0.53 | $208.7B |
| TJXTJX | $157.03 | +0.18% | -3.1% | 27.6x | 0.73 | $174.1B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price above both MAs — bullish structure.