Amazon (AMZN) Price Targets Cut as $200 Billion Capex Plan Weighs on Sentiment

Amazon.com, Inc. (NASDAQ:AMZN) ranks among billionaire David Tepper’s 10 favorite stocks. Benchmark reduced its price target for Amazon.com, Inc. (NASDAQ:AMZN) to $275 from $295 on February 6, but maintained a Buy rating on the tech giant. The drop follows Amazon’s recent earnings report, which included plans to invest $200 billion in capital expenditure this year, which is roughly $40 billion more than the market anticipated.

Despite a subdued overall reaction to the investment estimates, Benchmark noted that Amazon’s AWS cloud segment experienced 24% year-over-year growth and an increasing quarterly dollar contribution. The firm also reported considerable gains in key retail efficiency, with AWS margins staying strong.

Piper Sandler also lowered its price target for Amazon.com, Inc. (NASDAQ:AMZN) to $260 from $300, noting that Amazon “remains relentless on lowering cost to serve and working toward an AI product cycle,” implying that the company continues to prioritize efficiency while investing in AI capabilities.

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

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Disclosure: None. This article is originally published at Insider Monkey.