Analysts at Tigress Financial maintained a "Buy" recommendation, but lowered their target price on Amazon stock from $232 to $192 to reflect a revised valuation and growth rate adjustment.
According to analyst reports, there continue to be strong growth trends for Amazon. The upside is driven by its Prime Membership subscription, growing demand from third-party sellers, the strength of AWS and fast-growing advertising revenue. In addition, the stock's recent pullback is seen as a "big buying opportunity."
Experts explained that Amazon was the last major tech company to report disappointing results, where the stock ended up falling to its lowest level since April 2020. Despite the fact that the published results were disappointing at first glance, Amazon continues to report impressive results for a company of its size. Third-quarter net sales were up 15% YoY to $127.1 billion, with North American sales up 20% YoY to $78.8 billion, and international sales down 5% YoY to $27.7 billion due to continued difficulties in Europe and China.
As for Amazon Web Services, it was noted that despite numerous reports from large companies about a short-term slowdown in IT spending, the Amazon platform believes that corporate spending will return because it is very important to large companies. They retain their competitive technology advantage and continued decline in IT costs, which continues to drive continuous migration to the AWS cloud.
Analysts conclude that Amazon's leadership position in critical areas, along with its innovative capabilities, will further boost earnings, which will provide long-term shareholder value creation. Experts believe there is significant upside potential for the stock, and its 12-month target of $192 represents a potential return of more than 100 percent from current levels.