Amazon reported its quarterly results on Thursday, February 6, 2025, followed by a stock drop of 7.1% on Friday, February 7, 2025. This decline was driven by cautious first-quarter guidance, with projected revenue growth of just 5%, the slowest on record. The company also announced plans to invest $104 billion in AI infrastructure in 2025, sparking mixed reactions from investors and analysts.
Analyst Reactions and Price Targets
Despite the volatility, analysts remain largely bullish. BMO Capital raised its price target to $280 from $265, while Oppenheimer increased its target to $260 from $230. Other notable adjustments include Stifel lifting its target to $275 and Benchmark raising theirs to $270. However, Truist lowered its target to $265 from $270. The average price target remains around $265, reflecting optimism about Amazon's long-term potential.
AWS Performance and Market Context
Amazon's AWS division continues to be a key growth driver, but concerns persist about its performance compared to competitors like Alphabet. The company's settlement payment of $3.95M for worker tip theft adds another layer of complexity. Despite these challenges, Amazon's strong financial fundamentals and robust balance sheet position it well for navigating ongoing market dynamics.
Long-Term Outlook and Strategic Investments
Amazon's strategic focus on AI and its dominant position in e-commerce and cloud computing remain central to its long-term success. While near-term profitability concerns linger, many analysts view the recent stock decline as an opportunity. Investors will closely monitor how Amazon executes its AI initiatives and adapts to the evolving tech landscape.
* AI generated summary of articles
AMZN News
9-Feb-2025 4:45 AM CST - Business Insider Amazon Goes All-in on Artificial Intelligence in 2025 Amazon (AMZN) is going all-in on artificial intelligence, planning to pour over $100 billion into AI infrastructure in 2025. The company's CFO,
9-Feb-2025 3:47 AM CST - The Motley Fool 100 Billion Reasons to Buy Amazon Stock Hand Over Fist Right Now Is Amazon's (NASDAQ: AMZN) remarkable growth story fizzling? At first glance, one might think so. Management's guidance projects net sales of $151 billion to $155.5 billion for the first quarter of 2025.
8-Feb-2025 2:12 PM CST - MSN How did Alphabet, Amazon, Microsoft fare in a surging cloud market in Q4? Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) share a common theme: disappointing cloud businesses in a surging market. Shares of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) came under pressure after their recent quarterly earnings releases,
8-Feb-2025 7:04 AM CST - The Motley Fool Should You Buy Amazon Stock Right Now? Amazon ( AMZN -4.05%) is doing an excellent job of lowering its cost to serve customers while improving its delivery speed. *Stock prices used were the afternoon prices of Feb. 5, 2025. The video was published on Feb. 7, 2025.
7-Feb-2025 5:12 PM CST - MSN Amazon Stock Slides Friday Amid Concerns About AI Spending, Soft Forecast Key Takeaways Amazon shares dropped Friday after the tech giant said it plans to spend over $100 billion this year to support its AI goals and offered a softer-than-expected sales forecast.Analysts have remained largely bullish about the stock's upward trajectory,
7-Feb-2025 4:11 PM CST - 24/7 Wall St. Buy, Sell or Hold Amazon Stock at $230 Amazon (NASDAQ:AMZN) is one of the last mega-cap tech titans to pull the curtain on its quarterly numbers. And to wrap up what's been a rather muted earnings season for the Magnificent Seven, Amazon failed to impress with sluggish fourth-quarter growth numbers and a downbeat sales forecast.
7-Feb-2025 2:15 PM CST - Business Insider Amazon (AMZN) Receives a Buy from Rosenblatt Securities Rosenblatt Securities analyst Barton Crockett maintained a Buy rating on Amazon (AMZN - Research Report) today and set a price target of
7-Feb-2025 2:07 PM CST - StockStory.org Why Amazon (AMZN) Stock Is Trading Lower Today What Happened? Shares of cloud computing and online retail behemoth Amazon (NASDAQ:AMZN) fell 7.1% in the afternoon session after the company reported underwhelming fourth-quarter results: its revenue and operating income guidance for the next quarter both fell short of Wall Street's estimates.
7-Feb-2025 2:04 PM CST - The Motley Fool Why Amazon Stock Is Sinking Today Amazon (NASDAQ: AMZN) stock is slipping in Friday's trading. The tech giant's share price was down 4.1% as of 2:30 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was down 1%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 1.
Latest AMZN Trades by Congress Members
21-JAN-2025 - Marjorie Taylor Greene, GA (District 14) purchased between $1,001 and $15,000.
Amazon reported its quarterly results on Thursday, February 6, 2025, followed by a stock drop of 7.1% on Friday, February 7, 2025. This decline was driven by cautious first-quarter guidance, with projected revenue growth of just 5%, the slowest on record. The company also announced plans to invest $104 billion in AI infrastructure in 2025, sparking mixed reactions from investors and analysts.
Analyst Reactions and Price Targets
Despite the volatility, analysts remain largely bullish. BMO Capital raised its price target to $280 from $265, while Oppenheimer increased its target to $260 from $230. Other notable adjustments include Stifel lifting its target to $275 and Benchmark raising theirs to $270. However, Truist lowered its target to $265 from $270. The average price target remains around $265, reflecting optimism about Amazon's long-term potential.
AWS Performance and Market Context
Amazon's AWS division continues to be a key growth driver, but concerns persist about its performance compared to competitors like Alphabet. The company's settlement payment of $3.95M for worker tip theft adds another layer of complexity. Despite these challenges, Amazon's strong financial fundamentals and robust balance sheet position it well for navigating ongoing market dynamics.
Long-Term Outlook and Strategic Investments
Amazon's strategic focus on AI and its dominant position in e-commerce and cloud computing remain central to its long-term success. While near-term profitability concerns linger, many analysts view the recent stock decline as an opportunity. Investors will closely monitor how Amazon executes its AI initiatives and adapts to the evolving tech landscape.
* AI generated summary of articles
AMZN News
9-Feb-2025 4:45 AM CST - Business Insider Amazon Goes All-in on Artificial Intelligence in 2025 Amazon (AMZN) is going all-in on artificial intelligence, planning to pour over $100 billion into AI infrastructure in 2025. The company's CFO,
9-Feb-2025 3:47 AM CST - The Motley Fool 100 Billion Reasons to Buy Amazon Stock Hand Over Fist Right Now Is Amazon's (NASDAQ: AMZN) remarkable growth story fizzling? At first glance, one might think so. Management's guidance projects net sales of $151 billion to $155.5 billion for the first quarter of 2025.
8-Feb-2025 2:12 PM CST - MSN How did Alphabet, Amazon, Microsoft fare in a surging cloud market in Q4? Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) share a common theme: disappointing cloud businesses in a surging market. Shares of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) came under pressure after their recent quarterly earnings releases,
8-Feb-2025 7:04 AM CST - The Motley Fool Should You Buy Amazon Stock Right Now? Amazon ( AMZN -4.05%) is doing an excellent job of lowering its cost to serve customers while improving its delivery speed. *Stock prices used were the afternoon prices of Feb. 5, 2025. The video was published on Feb. 7, 2025.
7-Feb-2025 5:12 PM CST - MSN Amazon Stock Slides Friday Amid Concerns About AI Spending, Soft Forecast Key Takeaways Amazon shares dropped Friday after the tech giant said it plans to spend over $100 billion this year to support its AI goals and offered a softer-than-expected sales forecast.Analysts have remained largely bullish about the stock's upward trajectory,
7-Feb-2025 4:11 PM CST - 24/7 Wall St. Buy, Sell or Hold Amazon Stock at $230 Amazon (NASDAQ:AMZN) is one of the last mega-cap tech titans to pull the curtain on its quarterly numbers. And to wrap up what's been a rather muted earnings season for the Magnificent Seven, Amazon failed to impress with sluggish fourth-quarter growth numbers and a downbeat sales forecast.
7-Feb-2025 2:15 PM CST - Business Insider Amazon (AMZN) Receives a Buy from Rosenblatt Securities Rosenblatt Securities analyst Barton Crockett maintained a Buy rating on Amazon (AMZN - Research Report) today and set a price target of
7-Feb-2025 2:07 PM CST - StockStory.org Why Amazon (AMZN) Stock Is Trading Lower Today What Happened? Shares of cloud computing and online retail behemoth Amazon (NASDAQ:AMZN) fell 7.1% in the afternoon session after the company reported underwhelming fourth-quarter results: its revenue and operating income guidance for the next quarter both fell short of Wall Street's estimates.
7-Feb-2025 2:04 PM CST - The Motley Fool Why Amazon Stock Is Sinking Today Amazon (NASDAQ: AMZN) stock is slipping in Friday's trading. The tech giant's share price was down 4.1% as of 2:30 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was down 1%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 1.