Morningstar

Amazon’s stock remains a Strong Buy consensus choice on Wall Street, currently trading around $253.56 to $258.45 following its recent all-time high of $287.20 hit in August 2026. Driven by an annualized revenue run rate surpassing $775 billion and record operating profit margins reaching 12.68%, the company has successfully reversed declining worker productivity through robust AI implementations. Despite massive projected 2026 capital expenditures of $220 billion, institutional options flow signals a healthy, calculated optimism for the company’s near-term trajectory.

Context

Financial Performance & Valuation: Amazon’s core segments (AWS, e-commerce, and high-margin advertising) are firing on all cylinders. Wall Street analysts maintain an average 12-month target price of $328.22 to $333.89, indicating an estimated 31% upside. Morningstar pegs its fair value at $260, rendering current trading levels moderately undervalued.

The AWS & AI Growth Engine: AWS continues to dictate Amazon’s valuation premium. Cloud segment revenue has accelerated past 20% YoY growth ($33B+ per quarter) with operating margins scaling between 35% and 37%. Demand for proprietary Frontier AI models and cloud computing capacity vastly outstrips current supply.

My trade

Strategy: Bull Call

Execution:Buy $320 Call Options (320C) Sell $370 Call Options (370C)

Expiration Horizon: August 2026

Rationale: Rather than betting on an aggressive, volatile breakout, this defined-risk vertical spread leverages institutional “smart money” positioning. It capitalizes on a steady, moderate upside toward the $328+ analyst price targets while mitigating the premium decay risks associated with massive capital expenditures ($220B) entering the back half of the year.

Takeaway

Amazon has evolved from an e-commerce giant into an efficient infrastructure and AI powerhouse. While retail handles the consumer volume, AWS and automated AI workflows provide the true profitability engine.

Independent analysts use different methods to value SpaceX and I agree with Morningstar’s view. The current valuation depends heavily on future growth from Starship, Starlink, and xAI and not on its existing profits. In fact, SpaceX posted a net loss of $49.4 billion in 2025. Who ready care?

Would you be willing to risk your capital on this? Personally, I would rather invest in other GREAT companies. — that way, I can sleep well at night like a baby 😆.

Anyway check out the full infographic overview below for the latest updates on SpaceX 👇

SpaceX targeting $75 billion in the largest tech IPO in history. The Morningstar flag deserves attention: if secondary market prices already reflect a valuation below half the IPO target, retail investors buying at $135 per share are entering at a price that sophisticated institutional sellers are actively using to exit. That is not necessarily wrong as a long-term investment, but it is a specific risk profile. IPO pricing benefits the sellers, not the buyers.