KeyBanc Lifts Amazon Target on AWS Strength

The upgrade also lands at a time when the broader large-cap tech trade is trying to stabilize after a volatile stretch. Amazon has already rebounded sharply from a late-June low near $227, and the stock is now trading above its 50-day moving average of $253.10, with RSI readings near 72 pointing to strong momentum but also an overheated short-term setup.

The cloud narrative is central. AWS is still the most important profit engine in Amazon’s portfolio, and renewed confidence there can offset slower retail growth, continued capital spending and pressure from heavier competition across cloud infrastructure. The latest move from KeyBanc suggests analysts see enough strength in AWS to justify a richer multiple even after the stock’s big run this year.

Amazon’s recent technical and market action underscores that investors are leaning into that story. The shares have recovered from a March trough and are pressing toward the upper end of their recent range, while volume has picked up on the latest advance, signaling active institutional participation rather than a thin squeeze.

For investors, the key question is whether AWS can keep delivering enough growth to support further multiple expansion. That will hinge on the next round of cloud spending trends, any update from Amazon on capex and AI infrastructure, and whether the company can turn those investments into faster revenue and profit growth without squeezing returns.