William Blair analyst Dylan Carden has maintained their bullish stance on AMZN stock, giving a Buy rating today.
Dylan Carden has given his Buy rating due to a combination of factors that suggest Amazon’s resilience in the face of external pressures. Despite the initial outlook for the second quarter showing lower earnings, the revenue expectations remain stable, indicating that tariffs have not severely impacted Amazon’s growth trajectory. The company’s strategy of leveraging a diverse base of sellers allows for geographic flexibility, mitigating potential tariff impacts.
Furthermore, while operating margins have seen a slight decline, this is attributed more to increased expenses related to the Kuiper project and seasonal stock compensation rather than tariffs. Carden acknowledges the potential risks associated with sustained higher China tariffs, but believes Amazon’s diverse seller base and strategic inventory positioning provide a buffer. Additionally, the long-term outlook for AWS margins is optimistic, with anticipated benefits from AI productivity gains and slower hiring rates, which are expected to enhance profitability.
In another report released today, Barclays also maintained a Buy rating on the stock with a $240.00 price target.