JPMorgan analysts bet on Amazon and Uber

JPMorgan analysts reiterated the Best Idea designation on Amazon. They expect revenue growth to accelerate, margin to grow and capital expenditures of the company to decline in the long term. 

Improved financial performance may drive significant free cash flow inflection in 2023. Analysts predict Amazon's free cash flow to hit as much as $28 billion, returning to pre-pandemic levels. 

Amazon is still a clear favorite of JPMorgan. However, growing caution has been revealed among investors and analysts, particularly when it comes to retail and Amazon Web Services (AWS).

They acknowledge that FX headwinds will hold back the company's growth and profits. But they believe Amazon is better hedged than some other companies, with product costs in local currency and revenue mostly in U.S. dollars.

Uber is JPMorgan's second favorite. According to their estimates, the company will see ride-share recovery and increased operational efficiency, causing a $1.5 billion growth in EBITDA this year and allowing Uber to meet its 2024 goals.