William Blair analyst Dylan Carden has maintained their bullish stance on AMZN stock, giving a Buy rating today.
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Dylan Carden’s rating is based on a combination of factors that highlight Amazon’s potential for long-term growth despite recent challenges. While Amazon Web Services (AWS) experienced slower growth compared to competitors like Microsoft Azure and Google Cloud, Carden suggests that this may be a temporary issue. The current phase of AI development, which focuses heavily on model training, does not favor AWS due to its lack of strategic partnerships like Microsoft’s with OpenAI.
However, Carden believes that as AI technology progresses into the inferencing phase, AWS’s extensive infrastructure and market entrenchment will become significant advantages. This shift is expected to align better with AWS’s strengths, potentially reversing the current trend of losing incremental market share. Therefore, despite short-term concerns, Carden sees Amazon’s long-term prospects as favorable, justifying a Buy rating for the stock.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $272.00 price target.