Amazon Shares Rise 2% Pre-Market After Wells Fargo Upgrade, AWS Growth Sparks Investor Optimism

Amazon.com (AMZN) shares rose 2% in premarket trading on Wednesday, with the ticker becoming the top-trending name on Stocktwits after Wells Fargo upgraded the e-commerce giant to ‘Overweight’ from ‘Equal Weight,’ citing that Amazon Web Services (AWS) will see revenue acceleration.

Wells Fargo also raised its price target on Amazon to $280, up from $245, according to TheFly. The firm expects AWS sales to rise 22% in 2026, four points above consensus, with its share losses peaking in 2025. 

Retail sentiment on Amazon improved to ‘extremely bullish’ from ‘bullish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Wells Fargo noted that Project Rainier, the company's compute capacity build with partner Anthropic, will be the primary driver of the growth acceleration. The firm said it views the AWS revenue pickup as the key to reversing Amazon's stock underperformance year-to-date.

On Wednesday, AWS and SAP announced plans to make SAP Sovereign Cloud capabilities available on the AWS European Sovereign Cloud, a new, independent cloud for Europe backed by a planned €7.8 billion ($9.2 billion)  investment from Amazon.

Separately, the Amazon and U.S. Federal Trade Commission trial began on Tuesday, with Reuters reporting that FTC attorneys argued that Amazon was aware of millions of customers unintentionally signing up for its Prime membership but did not stop them because doing so would have harmed its revenue.

Shares of Amazon have gained nearly 1% this year and jumped over 14% in the last 12 months. 

€1 = $1.18

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