Amazon (NASDAQ:AMZN | AMZN Price Prediction) just posted a blowout quarter Q1 2026 EPS of $2.78 beat consensus by 60.69%, AWS reaccelerated to 28% growth, the fastest in 15 quarters, and chips business crossed a $20 billion annual run rate growing triple digits. Yet shares trade at $244.39, flat for the year. Can this stock reach $400 by 2028, and what would have to be true?

Why Amazon Shares Are Stuck Despite Strong Results

The issue is the bill. Andy Jassy told investors Amazon plans to spend about $200 billion in 2026 capex on AI, chips, robotics, and satellites. That obliterated near-term free cash flow. Q1 capex hit $44.2 billion alone, and trailing free cash flow…