Oppenheimer analyst Jason Helfstein has lowered Amazon.com's (AMZN.US) price target from $250 to $245 while maintaining an "Outperform" rating. The firm reiterated its rating amid investor concerns about the lack of positive outlook for Amazon Web Services (AWS) in the second half of 2025, as capacity constraints are expected to persist at least through year-end.
AWS reported second-quarter revenue growth of slightly over 17%, reaching $30.9 billion, marginally above the analyst consensus of $30.8 billion. However, this performance pales in comparison to competitors, with Microsoft Azure posting 39% revenue growth and Google Cloud achieving 32% growth during the three months ended in June.
Nevertheless, Amazon's CEO emphasized that artificial intelligence represents "the biggest technological transformation of a lifetime." This assertion appears well-founded, as AWS's AI business continues to expand at triple-digit annual growth rates, though its deployment within AWS remains in early stages.
Despite ongoing tariff impacts, the company has not observed any signs of weakening consumer demand.
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