Scotiabank Ups Amazon PT to $275, Maintains Bullish View Despite AWS Headwinds

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks in the Spotlight Right Now. On July 22, Scotiabank analyst Nat Schindler raised the price target on the stock to $275.00 from $250.00, while maintaining a “Sector Outperform” rating.

The firm believes that even though investor sentiment remains mixed as we head into second-quarter results due on July 31^st, Amazon is probably subject to the weakest sentiment amongst all three hyperscalers in its coverage.

While there were some concerns that Amazon Prime Day failed to achieve modest performance, later reports confirmed that the shopping event did achieve record sales. Sales surpassed any previous four-day event that included a Prime Day event.

Scotiabank has also noted potential margin pressure for Amazon Web Services (AWS), implying how capacity constraints may lead to a decline from the record margins achieved in the first quarter.

Meanwhile, investor concerns about artificial intelligence have also been acknowledged, stating how there are “murmurs that AWS’ struggle to develop a strong AI model has fueled a perception that it is trailing behind Google within AI development.”

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

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Disclosure: None.