Shares of Amazon.com, Inc. (NASDAQ:AMZN) rose after the company announced impressive profits for the second quarter. Analysts from various firms shared their takeaways from the earnings release.
Morgan Stanley’s Brian Nowak maintained an Overweight rating and raised the price target to $175. He noted that Amazon’s results and guidance were strong across its retail and AWS (Amazon Web Services) segments. Nowak also highlighted Amazon’s triple-pronged AWS AI strategy, which he believes will lead to faster growth in the future.
Laura Martin of Needham reiterated a Buy rating and raised the price target to $160. Martin praised Amazon’s focus on profits and expects lower fulfillment and delivery costs to offset investments in AI technology. She believes Amazon’s generative AI initiatives will improve the company’s return on invested capital within 24 months.
Dana Telsey from Telsey Advisory Group maintained an Outperform Rating and increased the price target to $160. Telsey was encouraged by Amazon’s strong Q2 results and better-than-expected guidance for Q3. She noted double-digit sales growth and improved profitability in the US and international markets. Telsey also highlighted the stabilization of AWS and customers’ shift toward innovative technologies like generative AI.
Mark Shmulik of Bernstein reaffirmed an Outperform rating and raised the price target to $175. Shmulik described Amazon’s performance as firing on all cylinders. He noted the stabilization of AWS, improved retail margins, and increased operating profits.
Analyst Dylan Carden, from William Blaire, maintained an Outperform rating and emphasized the improvement in margins in Amazon’s North America segment. Carden believes this contributes to the company’s compelling valuation case. He sees long-term potential for margin improvement in areas like retail gross margins, technology and content costs, and music and video expenses.
At the time of publication, Amazon’s stock had risen 10.71% to $142.72.
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