
Amazon Stock Hit with Major Wall Street Downgrade
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Related Stocks:AMZN
Shares of AMZN were shaken after investment firm Rothschild Redburn downgraded the e‑commerce giant from a “Buy” to a “Neutral” rating and clipped its 12‑month price target to US $250, implying only a roughly 7 % upside from its recent close around US $232.
The downgrade stems largely from increased caution about Amazon’s cloud business, AWS—long regarded as a key growth engine. Analyst Alex Haissl noted that although AWS has recently re‑accelerated, the competitive landscape is intensifying, and the opportunities for further upside appear more limited. He pointed out that AWS now faces similar pressures as MSFT’s Azure: while AWS is deeply integrated in Amazon’s stack and captures value, the rising prominence of generative AI is proving dilutive to returns.
Despite this cautious view from Rothschild Redburn, Wall Street at large remains upbeat: among the 42 analysts covering Amazon, all maintain a “Strong Buy” rating. Their consensus 12‑month target averages about US $296.64—implying roughly a 26.4 % potential gain from current levels—ranging from US $255 up to US $340.
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