JPMorgan Chase (JPM) is urging investors to buy Amazon (AMZN) stock now that it has fallen about 10% below its November high.
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Analysts at the New York banking giant say the current weakness in AMZN stock is unwarranted after the e-commerce company posted strong third-quarter financial results, including solid numbers for Amazon Web Services (AWS), its cloud computing unit.
JPMorgan is pounding the table on Amazon stock ahead of next week’s AWS event that’s being held in Las Vegas, Nevada. JPMorgan Chase expects Amazon executives to provide updates on custom microchips being developed at the technology giant, as well as the future direction of the cloud business.
Buy the Dip in AMZN Stock
The tech analysts at JPMorgan Chase say in a note to clients that AWS just posted its strongest quarter in nearly three years and should benefit moving forward from its artificial intelligence (AI) infrastructure strategy.
After initially rallying following the Q3 print, AMZN stock has been dragged lower in recent weeks by market noise around a $15 billion debt raise. There’s also some lingering uncertainty over the launch of Amazon’s next-generation Trainium microchips. However, JPMorgan Chase says that investors should tune out the noise and buy the pullback in AMZN stock.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 44 Wall Street analysts. That rating is based on 43 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $295.23 implies 26.80% upside from current levels.
