Bank of America says buy Amazon before earnings hit

Bank of America just told investors to buy Amazon stock now, before the company drops earnings later this month. The bank put Amazon on a short list of stocks it believes are best positioned heading into earnings, saying the tech giant has “more room to run.”

Analyst Justin Post wrote, “We believe Amazon’s valuation reflects uncertainty on AWS positioning, which has the potential to improve in 2026 if AWS revenue growth accelerates, and the company strengthens its relative AI capabilities.”

Basically, the current price is being held back by hesitation around its cloud unit. But Bank of America thinks that will change fast, and investors should start accumulating shares now.

Bank expects growth from retail and cloud while earnings loom

The note also said Amazon is positioned for multiple expansion as it keeps rolling out more AI tools. On the retail side, Post said the company “continues to execute on efficiencies,” and predicted that Amazon’s profit growth will beat other mega-cap tech peers.

This is all happening as the company gears up to report Q4 earnings for fiscal 2025, with analysts expecting $1.97 per share, up from $1.86 a year ago.

Amazon has already beat Wall Street’s profit forecast for four quarters straight. In Q3, it posted $1.95 EPS, blowing past estimates by 23.4%. Full-year profit for 2025 is expected to hit $7.17 per share, a jump of nearly 30% from last year’s $5.53. Analysts also see 2026 EPS reaching $7.85, another 9.5% increase.

So far this year, Amazon shares are up 3%, and over the past 52 weeks, they’ve climbed 11.4%. But that still trails the S&P 500’s 17.7% and the Consumer Discretionary ETF’s 11.6%, which is part of why Bank of America sees more upside left.

Nigeria grants Amazon a satellite license as global footprint expands

There’s more. Nigeria just gave Amazon a seven-year operating permit for satellite broadband, putting the company’s low-Earth-orbit network, formerly known as Project Kuiper, into play across the region starting in 2026.

Amazon’s satellite unit will now compete directly with Starlink, Elon Musk’s SpaceX-backed broadband provider.

The Nigerian Communications Commission (NCC) also granted similar permits to Israel’s NSLComm and Germany’s Satelio IoT Services, allowing all three to roll out non-geostationary satellite systems across the country.

This move signals a push into Africa’s expanding digital market, and puts Amazon’s infrastructure strategy back into focus; not just in cloud and AI, but in connectivity itself. The satellite license widens its reach, and could tie directly into AWS if the company begins connecting remote enterprise clients with its cloud backbone.

Amazon, now worth $2.6 trillion, still leads global e-commerce. The company, based in Seattle, runs a platform that sells just about everything, both directly and through third-party sellers.

Bank of America’s bullish call on Amazon was part of a wider list that included Brookdale Senior Living, Carvana, Corning, and Vertiv; each flagged for different reasons.

Brookdale got an upgrade from Joanna Gajuk, who raised her target from $6.75 to $13, citing operating leverage and low exposure to government payors.

Carvana got a target bump to $515 from $455, with analyst Michael McGovern calling out its expansion into physical dealerships and “best-in-class eCommerce growth.”

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