Shares of Amazon.com, Inc. closed lower on January 13, 2026, even as Wall Street turned more bullish on the company’s medium-term outlook.
The stock finished the session at $242.60, down about 1.6%, reflecting broader market weakness rather than company-specific fundamentals.
TD Cowen Raises Target on Ad Market Gains
Analyst John Blackledge of TD Cowen raised Amazon’s price target to $315 from $300, while reiterating a Buy rating. The move followed Cowen’s 14th annual advertising buyer survey, which pointed to Amazon as one of the biggest beneficiaries of shifting ad budgets in 2026.
According to the survey, more than 60% of advertisers plan to increase spending on Amazon this year, positioning the company as a major share gainer in the digital advertising market.
Prime Video Ads Drive Incremental Growth
A key upside catalyst highlighted by Cowen is the rapid adoption of Prime Video advertising. The survey showed 72% of buyers plan to use Prime Video ad inventory in 2026, up sharply from 62% in 2025. Analysts see this format as incremental rather than cannibalistic, expanding Amazon’s overall ad opportunity.
Because advertising carries significantly higher margins than retail operations, Cowen views this segment as a powerful lever for operating income expansion with limited incremental capital investment.
AWS Reacceleration Supports Bull Case
Beyond advertising, Cowen expects Amazon Web Services growth to reaccelerate toward 30% in 2026, supported by a roughly $200 billion cloud backlog and strong demand for AI-focused infrastructure. The combination of accelerating cloud growth and expanding ad margins underpins the firm’s confidence in Amazon’s earnings trajectory.
Valuation and Street Consensus
At the January 13 close, Cowen’s $315 target implies roughly 30% upside from current levels. Other major firms have also turned more constructive this month, with Wells Fargo lifting its target to $301 and Jefferies moving to $300.
Despite near-term stock volatility, analysts broadly view Amazon’s advertising scale, Prime Video monetization, and cloud momentum as core drivers heading into 2026.
