Jan. 26 at 8:54 PM
Amazon shares have lagged major tech peers, but Roth Capital analyst Rohit Kulkarni believes the stock is positioned for a rebound in 2026. He raised his price target to
$295 and reiterated a Buy rating, citing expected margin improvement from layoffs, accelerating growth at AWS, and stronger retail performance driven by AI tools.
Kulkarni argues the market is underestimating the margin relief from recent job cuts, including 14,000 announced in October and potential additional reductions in early 2026. He also expects AWS revenue growth to reaccelerate, with first- and second-quarter growth approaching 23%, which would help close the gap with faster-growing cloud peers. On the retail side, AI initiatives such as Amazon’s Rufus shopping assistant could support higher engagement and sales. With these catalysts in place, Kulkarni views Amazon as his top mega-cap pick despite recent underperformance.
$AMZN