Amazon.com (NASDAQ: AMZN) has staged a strong rebound in 2024. Driven by an e-commerce recovery, steady cloud demand, and early AI initiatives, the stock has regained investor attention. But with competition intensifying and expectations already high, analysts appear split on how much further Amazon can climb.
This article explores where Wall Street analysts think Amazon could be by 2027. We’ve compiled consensus targets, valuation models, and recent price action to outline the stock’s potential path. These figures reflect current analyst forecasts and are not TIKR’s own predictions.
Analyst Price Targets Suggest Measured Upside
Amazon’s stock sits at $235.84/share as of September 2025, while the 12-month average analyst target is $263.18. That suggests around 12% potential upside, which looks modest compared to some of Amazon’s past rallies.
Forecasts now range from a high of $306 to a low of $225, showing analysts remain split on how much further Amazon can climb. The broad range of outcomes suggests that while Wall Street generally sees upside, expectations are tempered.
Current targets imply Amazon may still have room to run, but not without the risk that high expectations prove difficult to meet.
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Amazon: Growth Outlook and Valuation Concerns
Analysts expect Amazon’s revenue to grow at about 10.5% annually through 2027, while operating margins could rise from 6.4% to 13.2%. That combination of moderate growth and margin expansion appears supportive of valuation gains, but much of that optimism may already be reflected in the stock.
At today’s price, Amazon trades at a 34x forward P/E multiple. Using that assumption in the guided valuation model, Amazon could reach $327/share by 2027, a gain of nearly 39% from current levels, or about 15% annually.
The upside case depends heavily on execution. To justify current multiples, Amazon will need to both improve margins and sustain double-digit revenue growth. Any shortfall could leave the stock looking expensive.
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What’s Driving Optimism?
Amazon’s bull case appears to rest on three engines of growth. AWS remains the profit center, with new AI services positioned to boost adoption and deepen customer lock-in. The retail business is showing signs of efficiency gains, with logistics and automation potentially driving higher margins. Meanwhile, advertising has quietly become one of Amazon’s fastest-growing businesses, offering a scalable, high-margin revenue stream.
Optimism looks fueled by the idea that Amazon can compound profitability across several businesses at once. If this plays out, the stock may justify its premium valuation.
Bear Case: Valuation Risk and Competitive Pressure
The counterpoint is that Amazon already trades at about 34x earnings, which appears expensive for a business expected to grow revenue at roughly 10% annually. If AWS growth slows, if AI adoption takes longer than expected, or if retail margin gains don’t materialize, Amazon’s valuation could be pressured.
Competition also remains a real risk. Microsoft’s Azure and Google Cloud are battling for enterprise share, while retailers like Walmart continue to chip away at e-commerce. Amazon may find it difficult to maintain momentum on all fronts.
The bear case suggests the margin for error is thin. If execution slips, the stock could re-rate lower, leaving less upside than analysts currently project.
Outlook for 2027: What Could Amazon Be Worth?
Under current forecasts, Amazon could reach about $327/share by 2027, which would be a gain of nearly 39% from today’s price of $236/share. That return looks attractive for a company of Amazon’s size, but it depends on steady double-digit revenue growth and a sharp improvement in margins.
If those assumptions hold, shareholders could see solid compounding over the next few years. If not, today’s valuation may already be baking in too much optimism.
The long-term story still appears favorable, but expectations are high. Amazon may need near-flawless execution to deliver on the upside analysts are projecting.
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