Some analysts on Friday revised their price targets for Amazon’s stock to reflect near-term concerns. Still, others said they remain confident in the retail giant’s long-term prospects.
“Overall, while all of AMZN’s business units are likely exposed to broader macro pressures, we do not view 3Q results or 4Q guidance as thesis changing,” wrote JMP Securities’ Nicholas Jones, who maintained his market outperform rating on Amazon shares but revised his price target down to $140 from $150.
“AMZN’s solutions within retail and cloud remain compelling offerings, in our opinion, and advertising continues to have a large opportunity for growth beyond promoted listings,” Jones wrote. “Accordingly, we see AMZN as a best-in-class internet business that can not only weather the macro storm, but emerge primed to reaccelerate growth.”
Wolfe Research analyst Deepak Mathivanan wrote in a note that Amazon’s fourth-quarter guidance shows it’s not immune to the challenging global macro environment.
“However, we think the company is well positioned to navigate a choppy demand environment with minimal disruption to operations and potentially gain share from sub-scale players,” said Mathivanan, who kept his outperform rating on Amazon shares but trimmed his price target to $130 from $150.
