Why is Amazon stock rallying today?

Amazon stock rallied 4.2% in morning trading after Phillip Securities upgraded the shares to Buy from Accumulate and raised its price target to $330 from $320, citing the company’s strong demand visibility in cloud computing and its strategic positioning across the artificial intelligence stack. Analyst Helena Wang argued that AWS’s 39.3% year-over-year revenue growth — its fastest pace in nearly five years — and Amazon’s model-agnostic approach, combining custom Trainium and Graviton chips with partnerships across major AI developers, justify a more constructive rating despite near-term cash flow pressure.

The upgrade arrives just days after Amazon’s Q3 results triggered a sharp selloff, with earnings per share of $1.89 coming in below consensus estimates even as operating income surged 61% year-over-year to $28.1 billion and AWS revenue reached approximately $46 billion. Several other Wall Street firms, including Morgan Stanley — which maintained an Overweight rating and kept Amazon as a top pick — and TD Cowen, which held a Buy rating, reinforced the view that the post-earnings decline was an overreaction. Citi also raised its AI cloud revenue estimates through 2028, citing continued hyperscaler demand acceleration as a broader positive for Amazon’s cloud business.

The broader market provided a constructive backdrop, with the S&P 500 gaining 0.6%, the Nasdaq advancing 0.75%, and the Dow Jones adding 1.0%, as investors rotated back into technology names following the prior week’s steep sector-wide decline. The recovery in large-cap tech helped amplify the move in Amazon shares, which had been trading near the lower end of their 52-week range of $196–$287.20 after the earnings-driven pullback.

Together, the combination of a timely analyst upgrade, a broadly bullish Wall Street consensus with an average price target well above current levels, and a recovering macro environment for technology stocks created the conditions for today’s sharp rebound in Amazon shares.