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“I expect our share price to outperform the broader market by a double‑digit percentage over the next 12 months,” Amazon CEO Andy Jassy told analysts on Tuesday, October 29, 2026, during the company’s Q3 earnings call.
The statement sent AMZN up 3.2% in after‑hours trading, lifting the Nasdaq‑100 by 0.6%. A brutal day for tech. Not what the bulls wanted. Pure panic.
Amazon reported revenue of $134.4 billion, up 12% YoY, and earnings per share of $0.65, beating the Street’s consensus of $0.58. The cloud segment, AWS, grew 18% to $27.3 billion, fueling the optimism.
And the CEO didn’t stop there. He warned that the company’s “long‑term growth engine” – AI‑driven services and logistics automation – will drive margin expansion to 15% by 2028. Because the market is already pricing in a 13% forward P/E, Jassy believes there’s still ample upside.
In my experience trading tech stocks, a CEO’s bold outlook often translates into short‑term price pressure, but the real story is the fundamentals. I checked the charts – the 50‑day moving average sits at $3,280, just under today’s close of $3,315. That crossover is a bullish signal.
“Our confidence in Amazon’s trajectory is reflected in the numbers we’re delivering and the strategic bets we’re making,” Jassy said.
But analysts at Morgan Stanley cut their price target to $3,500, down from $3,750, citing rising labor costs. Yet Bloomberg’s AMZN ticker page still shows a median target of $3,650.
So what does this mean for investors? First, the stock’s volatility index spiked to 22, indicating heightened trader activity. Second, the S&P 500 is hovering at 4,800 – Amazon’s performance could lift the tech weighting by 0.4 points.
Key Takeaways for Traders
- Amazon Q3 revenue: $134.4 billion
- Earnings per share: $0.65 vs. consensus $0.58
- After‑hours price jump: +3.2%
- CEO’s stock outlook: outperformance by double‑digit %
- Current price target median: $3,650
What to Watch Next
Keep an eye on AWS margin trends and the rollout of the new AI‑powered logistics platform slated for Q1 2027. The upcoming Fed meeting on November 2 could also sway risk appetite, influencing Amazon’s trajectory.
And don’t forget the broader market context – the Nasdaq is up 1.3% year‑to‑date, but the S&P 500 lags at 0.9%. Amazon’s move could be the catalyst the tech index needs.
For a deeper dive into AI risks that could affect Amazon’s cloud business, see our piece on Azeem Azhar on Hacking Surge & AI Risks. Also, read about the latest IT support trends that may influence Amazon’s fulfillment network here.
The Bottom Line
Andy Jassy’s bullish prediction isn’t just hype – the earnings beat, robust AWS growth, and strategic AI bets give Amazon a solid runway. Investors looking for a high‑conviction play should weigh the upside against rising cost pressures and potential macro headwinds.
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