Goldman Sachs Reiterates Buy Rating on Amazon.com (AMZN)

Goldman Sachs analyst Eric Sheridan reiterated a Buy rating and $145.00 price target on Amazon.com (NASDAQ: AMZN).

"Over the past few months, the competitive positioning and forward growth/margin prospects of Amazon’s AWS division have become a top investor debate on the back of dual themes: 1) the impact of the rise of AI as a driver of next generation computing & 2) the revenue deceleration of macro driven customer spend optimizations having an impact on AWS’s net revenue growth. In this note, we examine how AWS is positioned and developing an ecosystem to benefit from the rising AI/ML landscape for enterprise and consumer computing applications, recap a recent AWS Innovate day and frame elements of growth, margin and capex that could flex our operating estimates for Amazon’s AWS division against the backdrop. While most of our investor conversations around the theme of generative AI have been dominated by market share dynamics in Search & gross margin implications from higher compute costs against a potential increase in mix of non-commercial search, we believe as enterprises push deeper into integrating AI/ML tools into their tech stacks to drive core businesses, hyperscalers are underappreciated beneficiaries of this theme."

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $98.13 yesterday.

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