Prediction: Amazon Stock Could Be Poised for Its Next Big Rally in 2027

Amazon (NASDAQ:AMZN) has never looked more like a cloud and AI company that also happens to run the world’s biggest store. AWS revenue grew 39.3% last quarter, the fastest pace in nearly five years. Shares trade at $254.13, up 10.1% year-to-date even after a 4.47% pullback today. That drop followed a hyperscaler rally on the election results (CNBC).

The chief executive is thinking much bigger: “There has never been a trillion dollar revenue business, and we may have two of them in the next 5-10 years.” Here is what Amazon needs to do to hit $350 in 2027.

Wall Street Already Sees Big Upside for Amazon

The consensus price target of $326.74 implies 28.6% upside. Analysts are close to unanimous, with 16 Strong Buy and 42 Buy ratings against just 2 Holds. They expect 2027 revenue of about $950 billion, or 14.6% growth.

The 2027 EPS estimate has rose to $10.5805 from $10.4079 90 days ago. Q1 2026 was the fifth consecutive quarter that Amazon cleared the EPS bar, and Q2 beat again. Q3 then missed by 3.47%.

Here’s the Math Behind $350 Per Share

Today Amazon trades at about 24x 2027 earnings. At $350, the multiple would rise to roughly 33x. It’s a premium, but it buys a cloud business with a 38.7% operating margin and a $578 billion backlog.

Several factors could drive Amazon to $350.

• AWS acceleration: The CEO said “AWS can grow north of 40% in each of 2027 and 2028.”
• Trainium goes external: Amazon plans to sell chips outside AWS starting in late 2027, and OpenAI committed to about 2 GW of Trainium capacity starting next year.
• Retail margins: North America operating income rose to $8.72 billion from $4.79 billion, which helped push the company-wide margin to a record 13.9%.
• Advertising rebound: Management expects ad growth to return to the high teens in Q4.
• Rising estimates: Upward revisions to 2027 EPS outnumbered down ones 4 to 1 in the last 30 days.

The main hurdle is spending. Capex is running at about $220 billion for 2026, with “meaningfully more in 2027” on the way, and trailing free cash outflow stands at $42.4 billion.

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Amazon’s History Says $350 Is Possible

Reaching $350 requires a 37.7% gain. Amazon has topped that in 11 calendar years since 2000.

Shares rose 44.4% in 2024, 80.9% in 2023, 76.3% in 2020 and 117.8% in 2015. At a market cap near $2.75 trillion, matching those runs is harder. Still, the stock has done it before.

$350 Is a Stretch, but the Path Is Clear

Hitting $350 would take a 37.7% gain from today’s price. Wall Street already sees 28.6% upside, estimates are rising, and AWS is guiding to faster growth.

Heavy capex and a volatile market could slow the climb. If AWS clears 40% and Trainium sales take off, $350 is within reach. Returns at this level shouldn’t be expected every year, but we’ve outlined the plan for how Amazon could see outsized returns in 2027.