Bernstein analyst Mark Shmulik maintains an ‘Outperform’ rating on Amazon stock, citing strong AWS growth, strategic Prime Video investments, and a solid foundation for future free cash flow. He acknowledges increased infrastructure spending but believes Amazon’s investments generate good returns, particularly in areas like Prime Video.
Amazon’s stock surged on Friday after the e-commerce giant reported better-than-expected third-quarter earnings. The company exceeded revenue and earnings per share forecasts, driven by strong growth in its cloud computing division, Amazon Web Services (AWS).
Amazon shares surged in pre-market trading following the release of strong third-quarter earnings results. Revenue surpassed expectations, reaching $158.9 billion, and the company’s North America and international sales also showed significant growth. Amazon’s guidance for the fourth quarter anticipates continued revenue growth and strong operating income.
Amazon’s stock took a hit on Monday after Wells Fargo downgraded its rating and a federal judge allowed the FTC’s antitrust lawsuit against the company to proceed. The analyst cited slowing growth and increased competition, while the FTC accuses Amazon of anti-competitive practices.
Amazon’s stock has been on a rollercoaster ride recently, driven by a mix of positive and negative news. While an AI chip partnership with Intel and the upcoming Prime Big Deal Days offer potential growth, concerns regarding the economy and Amazon’s new office policy weigh on the stock. This analysis explores the factors influencing AMZN’s performance and examines the potential implications for leveraged ETFs like AMZU and AMZD.
Amazon shares are trading higher on Tuesday after announcing a new collaboration with Intel Corp. to develop AI chips for Amazon Web Services (AWS). This news coincides with Amazon’s upcoming Prime Big Deal Days event, which promises exclusive deals for Prime members ahead of the holiday season. Analysts are bullish on Amazon’s stock, with an average price target of $224.15, representing a potential upside of 18.86%.
Amazon’s stock price received a boost from positive retail sales data, but the broader economic picture remains uncertain. While jobless claims fell and retail sales increased, Amazon’s recent earnings report and concerns over inflation create a complex landscape for investors.
Analyst Justin Post of BofA Securities upgraded his rating on Amazon.Com Inc (AMZN) to Buy and set a price target of $204. He anticipates positive earnings for Amazon’s first quarter, with revenue estimates of $143 billion, aligning with market expectations. Post highlights AWS and advertising as potential growth drivers and predicts a possible outperformance in the retail segment. The analyst also discusses Amazon’s strategic shifts and operational efficiencies, which he believes will support margin expansion and drive stock performance. Despite a forward P/S multiple increase year-to-date, Post notes that Amazon’s valuation remains below its ten-year average, suggesting potential for multiple expansion.
