Bank of America Securities analyst Justin Post has reiterated their bullish stance on AMZN stock, giving a Buy rating yesterday.
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Justin Post has given his Buy rating due to a combination of factors surrounding Amazon’s strategic positioning and partnerships. The recent announcement of OpenAI’s open weight models being available on AWS Bedrock is a significant development, as it enhances Amazon’s AI capabilities and aligns with their cost-saving strategies. These models, while not the most advanced, offer substantial price-performance benefits compared to competitors, making them an attractive option for a wide range of customers.
Furthermore, the collaboration between AWS and OpenAI signifies a promising step towards deeper integration and potential revenue generation from AI services. Although AWS does not currently benefit from OpenAI’s infrastructure spending, the partnership allows Amazon to leverage its extensive cloud services to support OpenAI’s models. This move is seen as a positive indicator of Amazon’s commitment to expanding its enterprise business and capitalizing on cloud AI opportunities, reinforcing the Buy rating.
According to TipRanks, Post is a top 25 analyst with an average return of 23.7% and a 70.71% success rate. Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $265.00 price target.