Amazon stock 5 year forecast models from major banks assume steady

Amazon stock 5 year forecast models from major banks assume steady AWS margin expansion to 35%, with investor sentiment supported by consistent quarterly beats relative to Wall Street consensus. Gross margin declined 320 basis points to 42.2%, reflecting higher discounts in both the wholesale and direct channels and a shift back to the wholesale channel, which tends to be a lower gross margin. The margin decline seems to indicate more efforts to clear inventory , which fell 2% in the quarter to $8.1 billion, a positive sign. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy . The Amazon stock 5 year forecast is supported by strong free cash flow projections — analysts expect free cash flow to exceed $100B cumulatively by 2028, providing ammunition for share buybacks and strategic acquisitions.