Wells Fargo and Cantor Trim Amazon Price Targets as Analysts Look for AWS and AI Momentum Into Q4

Amazon is entering its next earnings window with a reset in analyst price targets, even as at least two major brokerages indicated they still expect the company’s performance to hold up. Wells Fargo and Cantor Fitzgerald, according to a market report carried by Yahoo Finance, both reduced their targets ahead of Amazon’s Q3 results while maintaining “Overweight” ratings.

The firms cited a set of recurring themes that have supported Amazon’s valuation: expectations for solid results in the third quarter and an outlook for Amazon Web Services (AWS) cloud growth to accelerate as the year progresses. AWS is Amazon’s cloud-computing platform, which sells infrastructure and software services to businesses and governments, and is a key driver of Amazon’s operating profitability.

In addition to near-term expectations, the analysts’ commentary emphasized durability in the cloud story. Wells Fargo is described as expecting AWS acceleration to continue into the fourth quarter, suggesting the brokerage sees momentum that extends beyond a single quarter rather than a brief uptick.

Cantor Fitzgerald also lowered its price target while keeping an “Overweight” view, aligning with Wells Fargo on the general direction of expectations heading into Q3. The market report frames the changes as target trims rather than rating downgrades, which typically implies analysts believe the stock’s upside case remains intact even if near-term assumptions have been adjusted.

The report also ties the bullish stance to technology demand themes that have become central to large cloud providers’ projections, particularly artificial intelligence. While the specific figures, model inputs, and share of workloads attributed to AI are not detailed in the market summary, the firms’ maintained “Overweight” posture indicates they believe AI-related activity and cloud usage can continue to support AWS performance.

For Amazon, the investor focus leading into earnings is often split between retail and the broader “services” segment that includes AWS. Retail can be influenced by consumer demand, promotions, and shipping costs, while AWS tends to reflect enterprise technology spending and spending on compute and data services. When analysts talk about AWS acceleration into subsequent quarters, they are implicitly indicating expectations for stronger enterprise usage trends and better unit economics than in prior periods.

This report does not provide the revised numerical price targets, the exact rationale paragraphs, or whether the firms made changes to assumptions on AWS growth rates, margins, or capital spending. It also does not specify whether either firm reduced the targets due to valuation considerations, changes to earnings estimates, currency or macro assumptions, or updated views on competitive dynamics in cloud services.

Investors watching Amazon next will likely look for confirmation that AWS growth is not only strong in Q3 but also consistent with the idea of continued acceleration into Q4. The key questions to watch include AWS revenue trends, commentary on demand visibility, and any guidance or qualitative discussion related to AI workloads and customers’ cloud adoption plans. Even with lower targets, maintaining an “Overweight” rating suggests these analysts see the earnings report as more of a validation step than a turning point.