Amazon shares closed the week on a strong note, buoyed by a strategic pharmaceutical partnership and sustained momentum in its cloud division. The stock gained roughly two percent in the final session, pushing its year-to-date advance to nearly five percent and leaving it trading well above its 200-day moving average of 193.25 EUR.
A significant driver of recent investor optimism is the company’s deepening push into healthcare. Through Amazon Pharmacy, the company has begun direct-to-home delivery of Eli Lilly’s oral GLP-1 medication, Foundayo (Orforglipron). Approved by the FDA in early April 2026, the tablet’s room-temperature stability offers a logistical edge over injectable rivals, simplifying distribution. Amazon currently serves approximately 3,000 U.S. cities with plans to expand to 4,500 locations by year-end 2026, while also offering the drug through kiosks in its One Medical clinics. This move positions Amazon as a direct competitor to traditional pharmacy chains and taps into one of the pharmaceutical industry’s fastest-growing segments.
Concurrently, the company is executing a major overhaul of its Prime Video streaming service. Since April 10, its ad-free tier has been rebranded “Prime Video Ultra,” with the monthly price jumping from $2.99 to $4.99—a hike of about 67 percent. The new premium tier mandates a subscription for 4K/UHD access, a feature previously available even in the ad-supported base package. This strategic shift appears aimed at converting a portion of its vast base of roughly 315 million ad-supported users.
All eyes are now on the company’s first-quarter earnings report, confirmed for April 23 after the U.S. market close. The results will be scrutinized against a backdrop of operational headwinds, including new U.S. import tariffs on Chinese goods and the elimination of duty-free rules for small packages, which are raising platform costs. For the Amazon Web Services (AWS) cloud unit, the benchmark is clear: analysts view revenue growth of at least 20 percent as critical to supporting the division’s valuation thesis.
Should investors sell immediately? Or is it worth buying Amazon?
AWS fundamentals appear robust. CEO Andy Jassy recently revealed that AI services are already running at an annualized revenue rate of over $15 billion. Furthermore, the cloud division’s backlog of committed business stands at $244 billion. The company is backing this growth with substantial infrastructure investment, channeling around $25 billion into new data centers. Its custom chip business, now a $20 billion operation, has internal projections suggesting it could grow to $50 billion.
Wall Street sentiment remains overwhelmingly positive, with 92 percent of covering analysts maintaining a bullish recommendation. Cantor Fitzgerald raised its price target this week to $260 from $250, reiterating an Overweight rating. BNP Paribas analyst Nick Jones is even more optimistic, setting a $320 target—implying a 45 percent upside—and arguing that the market systematically underestimates the earnings potential from Amazon’s announced $200 billion AI investment program.
Investor positioning shows a mixed picture. In Q4 2025, Highline Wealth Partners increased its stake by 7.4 percent, while corporate insiders sold shares worth approximately $14.9 million. The coming earnings report will be a key test of whether the recent stock advance, including a weekly gain of over seven percent, is built on sustainable momentum or premature optimism.
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