Amazon Upgraded to Buy as AWS Growth Hits 37%

Key Facts

1Amazon was upgraded to a buy rating as AWS growth accelerates and valuation becomes attractive.

2AWS posted its fastest growth in 18 quarters at 37%.

3Q2 net sales grew 20% to $200.6B.

In a move reflecting growing optimism in cloud computing and AI infrastructure, Amazon's stock rating has been upgraded to Buy. This positive shift is driven by the acceleration of the AWS segment, which posted a 37% growth rate, its fastest expansion in 18 quarters. Financial data further supports this outlook, with Q2 net sales growing 20% to reach $200.6 billion, bolstering confidence in the company's expansion strategy.

Per market data, AMZN shares closed at $262.07 on August 24, 2026, with the stock trading between a session low of $259.05 and a high of $263.32. Analysts suggest that the heavy capital expenditure directed toward AI infrastructure, including proprietary Trainium chips, is justified by the robust demand levels evidenced in the latest quarterly results.

Traders should monitor current levels for AMZN following its close at $262.07 (close August 24, 2026) to gauge the sustainability of this bullish momentum. Looking at the economic calendar, while there are no immediate upcoming catalysts for Amazon, the market is awaiting the release of the FOMC minutes, which could influence broader technology sector sentiment.

Sources:

seekingalpha.com