Amazon Shares Surge to Record Peak Amid Strategic Restructuring

Amazon's stock concluded the trading week by setting a fresh all-time high. The equity closed at $247.38 on Friday, marking an advance of approximately 7% since the start of the year. This upward momentum coincides with a wave of reiterated buy ratings from major investment banks and comes as the tech giant prepares for one of the most significant organizational overhauls in its corporate history.

All eyes are now on Amazon's scheduled release of its fourth-quarter 2025 financial results on February 5. Market experts are forecasting earnings per share of $1.94, with revenue anticipated to reach around $211 billion. This projected figure would represent a year-over-year sales growth of 12.4%. Historically, the company's shares have often experienced gains ahead of earnings announcements following periods of cautious positioning—a pattern that appears to be repeating itself. The current constructive backdrop is further supported by renewed strength in its cloud division and overwhelmingly positive analyst sentiment.

Cloud Division Fuels Analyst Confidence

A primary driver behind the market's renewed optimism is the robust performance of Amazon Web Services (AWS). In Q3 2025, the cloud unit's revenue expanded by 20% compared to the prior year, representing its strongest growth in nearly three years. Researchers project this acceleration will continue into 2026, with growth expected to reach 21%. This outlook is largely underpinned by the new Trainium-3 chips, which are reported to deliver four times the computational power alongside a quadrupling in energy efficiency compared to their predecessors.

Should investors sell immediately? Or is it worth buying Amazon?

This confidence is reflected in analyst ratings. Currently, 56 out of 60 covering analysts recommend purchasing the shares. Bank of America has named Amazon its top pick among mega-cap internet stocks for the first half of 2026, assigning a price target of $303. RBC Capital Markets also maintains a bullish stance, citing "best-in-class visibility on AI infrastructure returns" within AWS as a key rationale. The consensus average price target stands at $295, implying a potential upside of roughly 19% from current levels.

Major Workforce Reduction Plan Unveiled

Parallel to this stock rally, Amazon is preparing for deep structural cuts. The company will initiate a substantial round of layoffs beginning January 26, a process expected to extend through May. While the organization has officially confirmed 14,000 job eliminations, internal estimates suggest the total number of affected positions could reach as high as 30,000.

The restructuring will predominantly impact middle-management tiers and administrative functions. CEO Andy Jassy has framed this difficult decision as part of a strategy to run Amazon "like the world's largest startup," aiming for fewer organizational layers and increased operational speed. Capital saved from these workforce reductions is slated for reinvestment into artificial intelligence infrastructure. Over the coming decade, Amazon plans to commit $100 billion toward data center and AWS expansion.