Piper Sandler revised his outlook on shares of Amazon.com (NASDAQ: ), lowering his price target to $215 from $220 previously, while maintaining an overweight rating.
Adjustment on Friday followed by Amazon's second-quarter performance, which presented a mix of strengths and weaknesses.
The company credited Amazon Web Services (AWS) with its strong growth, noting a 19% increase that exceeded market expectations.
However, concerns have been raised about Amazon's retail segment, which showed disappointing revenue figures and a weaker-than-expected forecast for third-quarter revenue and profit.
The analyst expects to see few interruptions in what has been called “scientific testing” within the company.
Meanwhile, Piper Sandler lowered its price target to $215 from $220 but maintained an overweight rating, despite concerns about the company's retail division. William Blair reaffirmed the Outperform rating on Amazon, citing a moderate decline in the North American segment due to investments in Project Kuiper.
Susquehanna maintained its Positive rating, noting 11% year-over-year revenue growth and 19% growth in Amazon Web Services (AWS). Roth/MKM raised its price target for Amazon to $215, underscoring the continued strength of AWS.
InvestingPro Insights
Amid the mixed sentiment surrounding Amazon's recent performance, real-time data from InvestingPro helps provide a clearer picture of the company's financial position. Amazon's current market capitalization stands at $1.92 trillion, indicating its significant presence in the market. The company's P/E ratio, the ratio of its current share price relative to earnings per share, is 49.82 on a trailing twelve-month basis from Q1 2024, indicating the amount of premium investors are willing to pay for its earnings potential. In addition, Amazon's revenue growth remains strong as it has increased by 12.54% over the past twelve months, which may reassure investors about the company's growth potential.
Two of InvestingPro's most important tips given Piper Sandler's analysis include Amazon's low price volatility and its status as a dominant player in the Broadline Retail industry. These data suggest that despite the recent performance of the retail segment, Amazon's stock remains stable, and the company's dominant market position has not changed. Additionally, with analysts predicting profits this year and strong returns over the past decade, long-term investors may find these factors compelling. For those looking for more information, InvestingPro offers additional advice on Amazon, available at
Overall, InvestingPro's data and tips provide a clear picture of Amazon's financial health and market conditions, which can be useful for investors considering the company's prospects given recent earnings reports and analyst estimates.
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