Amazon (NASDAQ:AMZN)
On Friday morning, shares of Amazon (NASDAQ:AMZN) were down as investors and analysts processed the Seattle e-commerce giant’s warning that AWS customers are considering methods to maximize cloud expenditure in light of the current economic climate. The AWS business witnessed revenue growth rates in April that were around 500 basis points lower than what the firm achieved in Q1.
Wall Street analyst Adam Jonas of Morgan Stanley recently pointed out that the optimization barriers for AWS should begin to be lapped in August and September. According to Jonas, the +$2.5T public cloud potential is where Amazon investors should put their long-term attention. Morgan Stanley maintained their Overweight rating on Amazon stock and the $150 price target.
Evercore ISI claims that the fluctuations in corporate spending, notably from SMEs and new businesses, are to blame for AWS’s slowing growth. Mark Mahaney, an analyst, concluded that the Amazon long thesis is still very much intact, even considering AI. “We shouldn’t expect to see the AI Revolution on cable news. Not on the main campus, that’s for sure. He said it will be hosted on the cloud, “AWS is the clear market leader.”
Bank of America expressed optimism about Amazon’s retail success and anticipated market share increases. The bank added that the company’s investment cycle history hints at more margin upside. The stock maintained a Buy rating and a $139 price target.
Michael Wiggins De Oliveira, leader of the investing group, was less bullish on Seeking Alpha. According to his interpretation of AWS’s remarks, the corporation is cutting prices to show its financial difficulties. While some investors may wish it were otherwise, he thinks Amazon stock is more cyclical than they would like.
Amazon’s CFO Brian Olsavsky expressed concern about the uncertain economic situation and the persistence of inflationary pressures during the company’s most recent earnings call. His ideas were consistent with those of other CEOs and CFOs in the retail industry.
Premarket trading for Amazon stock showed a decline of 1.48% after an early results rise.
Featured Image: Unsplash @ sunriseking
