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Citi raised its Amazon price target to $285 from $265 on Wednesday, March 25, while maintaining a Buy rating. The update also included higher estimates for Amazon Web Services (AWS), driven by continued artificial intelligence (AI) demand and revenue contributions expected from Anthropic, OpenAI, and core workloads.
Citi now expects AWS revenue to grow 28% year-over-year in Q1 and 29% in 2026 overall. For 2027, the bank projects AWS revenue growth of 37%, reflecting how Amazon’s Anthropic and OpenAI partnerships are expected to evolve.
While Citi acknowledged concerns related to returns on investment, competitive pressure, and limited free cash flow visibility, the analysts said faster monetization, revenue growth, and rising operating income support a constructive outlook.
“...we believe AWS can ramp its infrastructure capacity given demand (we are adjusting our CapEx projections slightly as well). While we acknowledge the concerns around AWS ROI, competition, and limited FCF visibility, given monetization quickly following capacity additions, accelerating revenue growth, and rising OI, we believe AWS is increasingly well positioned,” analyst Ronald Josey wrote.
Citi said AWS will drive future growth and expects Anthropic to contribute about $18 billion to AWS revenue in 2026 and $31 billion in 2027. The projections are based on estimates of inference, training, and reseller activity running on AWS infrastructure as Project Rainier scales.
For OpenAI, Citi pointed to AWS’s $100 billion, eight-year Trainium partnership and a $38 billion, seven-year GPU agreement with Nvidia. Based on these joint moves, Citi estimates OpenAI could generate about $6 billion in AWS revenue in 2026 and roughly $18 billion in 2027.
Citi’s analysis suggests AI-related demand could account for around 58% of incremental AWS revenue this year and roughly 72% next year. The bank also said AI adoption is increasingly driving new cloud migrations and workloads, which should help non-AI workloads sustain growth.
Separately, Citi’s move comes as the average Amazon share price target for the next twelve months is $283.57, based on 44 analyst takes over the past ninety days, according to TipRanks. Of those, 44 analysts rate Amazon a Buy, 3 rate it a Holding, and there have been no Sell recommendations over the past three months, placing Amazon on Wall Street’s Strong Buy list.
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