Amazon's share price near $256 reflects robust AWS momentum amid heavy AI infrastructure spending, with Q2 revenue up 20% overall and AWS surging 37% year-over-year to deliver operating margins near 39%. A $496 billion cloud backlog—more than double early-2026 levels—signals sustained demand visibility, while 2026 capex guidance rose to $220 billion to expand data centers and custom chips. Traders are pricing in continued advertising and e-commerce strength ahead of the October 29 Q3 earnings release, where consensus EPS stands at $1.99. Analyst targets average around $331, implying material upside from current levels, though elevated capital outlays continue to pressure free cash flow near term.