Amazon Analysts Slash Price Targets Ahead Of Q3 – Wells Fargo Sees AWS Acceleration To Continue In Q4

• Wells Fargo expects AWS growth to accelerate in Q4 and Amazon to reiterate its 2026 capital expenditure forecast of $220 billion.
• Cantor Fitzgerald expects healthy acceleration in cloud growth and strong earnings before interest and taxes margins.
• Wells Fargo is looking for more details on Amazon’s consumer AI strategy and its approach to emerging AI agents.

Amazon.com Inc. (AMZN) is in focus on Monday as analysts reduced their price target on the stock ahead of the company’s third-quarter earnings report later this month.

Wells Fargo lowered its price target on Amazon to $329 from $338 while maintaining an 'Overweight' rating.

According to The Fly, the firm expects Amazon’s third-quarter results to come in ahead of consensus, with AWS growth accelerating in the fourth quarter. Wells Fargo expects the acceleration to support revenue and operating income guidance at the high end of Street expectations.

The firm also expects Amazon to reiterate its 2026 capital expenditure forecast of $220 billion.

AMZN shares traded 0.7% lower on Monday morning at the time of writing.

Consumer AI Strategy Also On Wells Fargo’s Radar

Wells Fargo is looking for more detail on Amazon’s consumer AI strategy, including how the company approaches emerging AI agents and existing offerings such as Meta’s Muse, according to The Fly.

In a report published on September 22, The Wall Street Journal reported that Amazon had blocked Muse from accessing its shopping site and making purchases on users’ behalf.

An Amazon spokesperson told Adweek: “We think it's fairly straightforward that third-party applications that offer to make purchases on behalf of customers from other businesses should operate openly and respect service provider decisions about whether or not to participate.”

Cantor Fitzgerald Highlights Cloud Growth And AI Demand

Cantor Fitzgerald lowered its price target on Amazon to $310 from $320 while maintaining an 'Overweight' rating.

According to The Fly, the firm expects healthy acceleration in cloud and strong earnings before interest and taxes (EBIT) margins. Cantor Fitzgerald also expects management commentary to improve confidence in the durability of AI demand.

Amazon Reportedly In Talks To Acquire Decart For $7B

Amazon is in talks to acquire AI startup Decart in a deal that could be valued at around $7 billion, according to The Wall Street Journal report published on October 11. 

Decart develops software that allows developers to switch between different AI chips. The startup is also developing AI models capable of generating and simulating three-dimensional environments, according to the report.

Amazon Web Services reportedly gave Decart early access to its custom Trainium3 chip in 2025. The potential acquisition would add to Amazon’s efforts to expand its AI infrastructure and custom-chip capabilities.

How Retail Views AMZN

Retail sentiment on Stocktwits remained ‘Bullish,’ while message volume was ‘Extremely High’ over the past 24 hours.

AMZN shares have gained over 13% year-to-date.

Also read: SPCX Stock: This Analyst Sees 41% Upside As Starlink Mobile Targets Wireless Market

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