16 Trending AI Stocks on Latest Analyst Ratings and News

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3. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 308    

Amazon.com, Inc. (NASDAQ:AMZN) operates as a technology conglomerate with core interests in the ecommerce business. Investor concerns around the stock have been mounting in the past few weeks, mainly due to weaker-than-expected revenue growth projections and continued high spending, mostly on AI and cloud infrastructure. The forward guidance on revenue fell short of Wall Street estimates in the latest quarter despite a 12% rise in total sales and higher-than-expected profits for the second quarter. This has led to concerns about slower growth in the coming quarters. The significant capital expenditures, in part on the development of AI capabilities, have also raised worries about the impact on short-term profitability.

Perhaps these are some of the reasons why Wells Fargo recently lowered the price target on Amazon.com, Inc. (NASDAQ:AMZN) stock to $225 from $232 and kept an Overweight rating. In an investor note, the advisory noted that heavy upfront costs related to satellite launches, commencing in the second half of 2024, reduce operating income forecasts for Amazon from 2025 through 2027. The note further detailed that Kuiper presented an attractive opportunity longer term for Amazon, but also unclear synergy with core operations.

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