Amazon.com Inc. (AMZN) shares took a hit on Thursday, falling nearly 2% even as the broader market rallied. The stock's slide came despite a chorus of bullish analyst takes on the company's cloud computing business and its AI-driven growth prospects.
Amazon's Stock Dip: Why Analysts Are Still Bullish on AWS AI
MarketDash
Amazon shares fell nearly 2% on Thursday, but analysts see a massive AI opportunity ahead for AWS, with revenue projections topping $335 billion.
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Rosenblatt Sees AWS Growth Outpacing Expectations
Rosenblatt analyst Scott Devitt initiated coverage of Amazon with a Buy rating and a $335 price target, arguing that investors are undervaluing the company's AI opportunity. Devitt expects AWS growth to reach 45% by the end of 2026, well above the Street's 38% estimate. He also projects AWS annual revenue will exceed $335 billion by 2028.
Citizens Says AI Demand Supports Cloud Growth
Citizens analyst Andrew Boone reiterated a Market Outperform rating and a $315 price target, pointing to strong growth at OpenAI and Anthropic as a positive indicator for AWS. Boone expects rising AI usage to support cloud infrastructure demand and believes hyperscalers are unlikely to face significant excess server capacity.
Despite these optimistic forecasts, Amazon shares remained under pressure even as the Nasdaq gained 1.01% and the S&P 500 rose 0.59%. Consumer Discretionary fell 0.7%, but Amazon still underperformed the sector.
Top ETF Exposure
- Franklin Focused Dynamic Growth ETF (FFOG): 9.86% Weight
- Direxion Daily Magnificent 7 Bull 2X ETF (QQQU): 9.80% Weight
- Argent Large Cap ETF (ABIG): 9.20% Weight
Significance: Because Amazon carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
AMZN Price Action
Amazon.com shares were down 1.58% at $256.18 at the time of publication on Thursday, according to market data.
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