Wells Fargo Upgrades Amazon, Raises Price Target to $280

Wells Fargo upgraded Amazon to Overweight from Equal Weight and raised its price target to $280, citing increased conviction that AWS revenue will accelerate due to Project Rainier and the Anthropic partnership. The bank raised its 2026 AWS growth forecast to about 22%—above consensus—and said Anthropic and the Indiana compute build should materially contribute to 2026–27 revenue, with AWS share losses expected to peak in 2025 and improve thereafter. Wells Fargo warned about execution risks around Project Rainier, potential Trainium chip issues and margin compression from scaled AI workloads, but still lifted EPS estimates through 2028. Despite the upgrade, Amazon shares have been flat year-to-date, trading near $220.87 in recent sessions and showing technical weakness after breaking key support and a declining relative strength line. Near-term uncertainty, including late-October earnings, has prompted some traders to pursue defined-risk bearish option strategies such as a Nov. 21 240/245 bear call spread.