Amazon (AMZN) Stock: Is Prime Day the Catalyst Bulls Have Been Waiting For?

TLDR

• Amazon Prime Day begins June 23, spanning four days across 27 countries and 35+ product categories.
• Bank of America analyst Justin Post expects $21.6 billion in gross merchandise value (GMV), up 5% year-over-year.
• Post holds a Buy rating with a $310 price target, implying ~27% upside from current levels.
• AWS grew revenue 28% in Q1 2026, its best growth in nearly four years, contributing 59% of Amazon’s total profits.
• AMZN is down roughly 10% from its recent all-time high, trading around $244.65.

Amazon Prime Day kicks off tomorrow, June 23, and Wall Street is paying close attention. The four-day event is one of the biggest retail moments of the year and could give investors a clearer read on where Amazon’s core e-commerce business stands.

Amazon.com, Inc., AMZN

The event covers more than 35 product categories and runs across 27 countries. It’s not just about moving product — Prime Day also pulls in new Prime members and drives traffic through advertising, subscriptions, and third-party marketplace sales.

Bank of America Securities analyst Justin Post is expecting big numbers. He projects Amazon will generate $21.6 billion in GMV during the event, a 5% increase from last year.

Post sees first-party GMV hitting $11.6 billion and third-party GMV reaching $10 billion. He also forecasts that Prime Day could add $12.4 billion in incremental GMV and $8.5 billion in incremental revenue to Q2 results.

He maintained his Buy rating and kept his price target at $310. That implies roughly 26.9% upside from where the stock is currently trading.

One tool Post is watching closely is Alexa for Shopping. He believes the AI-powered feature could help customers track prices, find deals, and automate purchases — and over a longer timeline, he estimates it could add more than $200 billion in sales and around $20 billion in retail profit by 2035.

AWS Still the Engine

While Prime Day grabs the headlines, AWS remains Amazon’s most important profit driver. In Q1 2026, AWS revenue grew 28% — its fastest pace in nearly four years — and accounted for 59% of Amazon’s total operating profit.

CEO Andy Jassy has called AWS the start of a multiyear growth cycle. Amazon is spending $200 billion on data center build-outs this year, more than any other AI hyperscaler. Jassy has noted that client demand is already lined up for the new computing capacity.

Valuation in Focus

AMZN stock is currently trading around $244.65, down roughly 10% from its recent all-time high. Year-to-date, the stock is up approximately 7%, trailing the broader S&P 500.

On a price-to-operating cash flow basis, Amazon trades at around 17 times — comparable to Microsoft and cheaper than Apple at 32 times or Alphabet at 26 times.

The TipRanks consensus sits at Strong Buy, based on 45 Buy ratings and one Hold. The average analyst price target is $319.14, suggesting about 30.6% upside from current levels.

With Prime Day starting tomorrow and Q2 results down the line, near-term attention will be on sales performance and what it signals about consumer demand in the second half of 2026.

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