- Amazon‘s stock receives upgraded ratings from Wall Street analysts despite a recent 5% decline.
- Wells Fargo raises its AMZN rating to Overweight, citing stronger industry growth and higher AWS forecasts.
- Most analysts surveyed by FactSet maintain a Buy rating, with an average price target of $264.
- Amazon plans up to $100 billion in Artificial Intelligence investments this year, amid concerns about returns.
- AMZN currently trades near its 52-week high and above its 200-day simple moving average.
Amazon stock has received a series of upgrades from Wall Street analysts this week, even as its share price fell by 5%. Analysts attribute the latest rating changes to recent investment strategies and industry factors impacting the e-commerce and cloud services company.
Wells Fargo this week upgraded shares of Amazon (AMZN) to Overweight from Equal Weight. Analyst Ken Gawrelski at Wells Fargo stated, “While share losses remain material, we take solace in stronger industry growth and rising AWS estimates.” According to FactSet, 68 of 71 analysts now rate AMZN as a Buy or equivalent, with an average price target of $264.
Other firms have set similar targets. Pivotal Research and Cantor Fitzgerald provided price targets of $260 and $280 respectively, showing confidence in upside potential. Wedbush and Roth MKM each maintained optimistic ratings, targeting $250, while Rosenblatt set a higher price target of $297.
Concerns remain about Amazon’s significant artificial intelligence (AI) investments, as the company has announced plans to spend up to $100 billion on AI this year. Some investors are cautious, questioning whether these expenditures will yield the expected returns. The company’s current quarterly guidance for operating income is between $15.5 billion and $20.5 billion, with the midpoint falling below Wall Street’s forecast of $19.5 billion.
Despite a slower month for the stock and ongoing debate over major AI spending, Amazon continues to trade close to its 52-week high and remains above its 200-day simple moving average. For more, see “Amazon: Cramer Bullish, AMZN Joins Morgan Stanley Vintage List.”
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