Here's what every major analyst had to say about Amazon's blowout earnings report

Published Fri, Jan 31 20207:59 AM ESTUpdated Fri, Jan 31 20204:01 PM EST

(This story is for CNBC PRO subscribers only.) Amazon reported blowout earnings for its fiscal fourth-quarter on Thursday after the bell, surprising even the most bullish Wall Street analysts. They still see more upside in the stock. Shares of the company surged over 7% on Friday, reaching a $1 trillion market capitalization. The e-commerce giant's investments in its various initiatives like one-day shipping continues to pay off, easing analyst concerns over the cost of heavy spending. In addition, the company reported a record number of prime members while the company's cloud business , Amazon Web Services, continues to get bigger and faster despite increasing competition from the likes of Microsoft and others. Here's what else analysts are saying about Amazon's earnings report: "AMZN's 1-day retail and AWS investments from 2019 are blooming... and driving faster growth and profitability while also extending AMZN's ability to invest in new businesses," Morgan Stanley analyst Brian Nowak said. The investment firm said the company's one-day shipping effort is paying off in more ways than one. "AMZN's 4Q results and 1Q guide showcase how 1-day is driving faster than expected share gains (top-line) and 1-day efficiency continues improving." The feeling was similar for Goldman Sachs. "With concerns about deceleration in the AWS business allayed, at least for the moment, we believe the expected acceleration in revenue growth driven by the company's investments in fulfillment and infrastructure and the associated high returns are likely to drive significant share price outperformance as AMZN catches up to other large cap technology names," analyst Heath Terry said. Any concerns about the company spending too much at the cost of growing profits might be overdone according to UBS. ""After a series of quarters where investor fears about pace/cadence of investments (shipping & AWS) and AWS revs deceleration became the dominant narratives, AMZN mgmt checked all the boxes with its Q4'19 EPS report," they said. The firm also acknowledged the stock's underperformance in 2019 but urged calm and said it sees plenty of upside this year. "Despite a strong after-market reaction, we would expect AMZN shares to sustain outperformance in 2020." Simply put, Amazon is a company firing on all cylinders, JPMorgan said. "These results should provide assurance that investments in Prime, one-day shipping and AWS are beginning to pay off, and we're increasingly optimistic AMZN will continue to execute throughout 2020 on both the top and bottom line." RBC- Outperform rating, pt to $2,700 from $2,500 "AMZN – along with NFLX and UBER – have been the most dislocated of the high-quality Large Cap Nets. And with Q4 results, we expect this to change in a hurry. One Day is proving out; Prime Members are growing rapidly (150MM+ now); International Retail is poised to accelerate thanks to multi-year investments in The Five; AWS remains the clear Cloud Market Leader; and software-improved server cycles should translate into lower AWS CapEx intensity. The AMZN Long Thesis is fully intact." UBS- Buy rating, pt to $2,440 from $2.305 "After a series of quarters where investor fears about pace/cadence of investments (shipping & AWS) and AWS revs decel became the dominant narratives, AMZN mgmt checked all the boxes with its Q4'19 EPS report. ... In addition, against that backdrop, AMZN mgmt in no way left investors with the view that their global agenda to drive better performance for platform partners still has a long runway ahead. We reiterate our Buy rating and raise our PT to $2,440 to reflect updated fwd estimates. Despite a strong after-market reaction, we would expect AMZN shares to sustain outperformance in 2020 (after a year of underperformance & multiple compression in 2019)." Morgan Stanley- Overweight rating, pt to $2,400 from $2,200 "AMZN's 1-day retail and AWS investments from 2019 are blooming... and driving faster growth and profitability while also extending AMZN's ability to invest in new businesses. ... AMZN's 4Q results and 1Q guide showcase how 1-day is driving faster than expected share gains (top-line) and 1-day efficiency continues improving." Goldman Sachs- Buy rating, pt to $2,600 from $2,200 "With concerns about deceleration in the AWS business allayed, at least for the moment, we believe the expected acceleration in revenue growth driven by the company's investments in fulﬁllment and infrastructure and the associated high returns are likely to drive signiﬁcant share price outperformance as AMZN catches up to other large cap technology names. Credit Suisse- Outperform rating, pt to $2,400 from $2,100 "We maintain our Outperform rating on the following points: 1) continued ecommerce segment operating margin expansion as Amazon grows into its larger infrastructure, 2) optionality for faster-than-expected FCF growth vis-à-vis its advertising segment, 3) upward bias to AWS revenue forecasts and likely more moderate deceleration path as suggested by ongoing capital intensity and rising performance obligations." Deutsche Bank- Buy rating, pt to $2,400 from $2,275 "We think the relief rally in Amazon shares has room to run following better-tha nfeared AWS top-line growth and easing comps ahead, an overall top-line beat, guidance for top-line acceleration in 1Q and upside to operating income. We think the 34% AWS number is enough to largely allay fears stoked by recent AWS management changes, particularly given the Q/Q dollar growth printed the best growth we have seen in a year. The move to 1-day prime appears to be driving healthy unit growth and strong Prime subscriber adoption, which bodes well going forward." JPMorgan- Overweight rating, pt to $2,525 from $2,200 "Overall, AMZN's numbers surpassed expectations across the board, particularly on AWS Revenue growth and the 1Q OI guide. These results should provide assurance that investments in P1D and AWS are beginning to pay off, and we're increasingly optimistic AMZN will continue to execute throughout 2020 on both the top and bottom line." Barclays- Overweight rating, pt to $2500 from $2020 "Fears over AWS should be put to bed after 4Q, with only 100bps of deceleration and more dollar-adds Y/Y than Azure/GCP combined. Fears over retail profitability should also subside given the upside in 4Q on better efficiency and the strong 1Q OI guidance. AMZN shares have markedly underperformed its mega-cap peers for the last 6 months, hence we think the catch-up may be aggressive and push well beyond what we are seeing in after-market - we would continue to add to positions. Shares are at 17x 2021E EBITDA, near an all-time trough and many investors are underexposed, so we think there is room to run." Bank of America- Buy rating, pt to $2480 from $2330 "AWS margins also beat Street, likely on lower sales and marketing investment levels. Results diminish the Azure/Google competition overhang, and AWS is seemingly back in strong position as a top cloud play and should benefit from SaaS industry multiple expansion ... In conclusion, a very positive quarter for Amazon, with better-than-expected 4Q results on AWS growth and a noticeable 3P benefit from one-day shipping capabilities. After an investment cycle throughout 2019, these results suggest potential for significant return on investment on One-day and AWS investment in 2020."

Amazon CEO Jeff Bezos laughs at a discussion at the Air Force Association's Air, Space and Cyber Conference in National Harbor, Md., Sept. 19, 2018.

Andrew Harrer | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Amazon reported blowout earnings for its fiscal fourth-quarter on Thursday after the bell, surprising even the most bullish Wall Street analysts. They still see more upside in the stock.

Shares of the company surged over 7% on Friday, reaching a $1 trillion market capitalization.

The e-commerce giant's investments in its various initiatives like one-day shipping continues to pay off, easing analyst concerns over the cost of heavy spending. In addition, the company reported a record number of prime members while the company's cloud business, Amazon Web Services, continues to get bigger and faster despite increasing competition from the likes of Microsoft and others.

Here's what else analysts are saying about Amazon's earnings report: