Amazon Pushes Into Third-Party Logistics while Cloud Backlog and AI Demand Lift Wall Street Views
Analysts raised revenue and backlog forecasts after the company opened a large logistics offering and AWS showed stronger AI-driven demand.
Overview
- On May 4, Amazon launched Amazon Supply Chain Services, which includes Amazon Freight for road shipping and Global Logistics for ocean and air freight to serve non‑Amazon vendors.
- UBS updated its AWS model on May 27, forecasting $175.9 billion in AWS revenue and projecting $350 billion in committed cloud contracts through 2026 and beyond.
- Wolfe Research reaffirmed an Outperform rating and a $320 target on May 29 while estimating the addressable market for the new logistics unit at more than $1.2 trillion.
- Amazon’s fiscal first-quarter 2026 results beat expectations with EPS of $2.78 and revenue of $181.52 billion, giving analysts data to justify upgraded price targets and bullish coverage.
- Regulatory and legal risks remain active, including an EU cloud procurement review and a Ring privacy lawsuit, even as institutional buying and overwhelmingly positive analyst ratings support investor optimism.