Bernstein raised the firm’s price target on Amazon.com (AMZN) to $235 from $230 and keeps an Outperform rating on the shares. The firm notes AWS growth decelerated sequentially in Q1 to +17% year-over-year, while AI contribution continues to grow triple digits year-over-year from a relatively smaller base vs Azure. Similar to their CSP peers, the company remains supply constrained on not only chips, but also motherboards and other components, which has put a near-term cap on topline growth despite strong demand indications. Management expects constraints to ease throughout the year, Bernstein adds.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AMZN:
- Amazon Stock (AMZN) Jumps as Robots Match Warehouse Workers
- Amazon’s Strategic Prime Day Extension and AI Integration Drive Buy Rating
- Amazon on cusp of using more robots than humans in warehouses, WSJ says
- Citi ups Trade Desk price target, adds ‘upside 90-day catalyst watch’
- Nintendo pulled products from Amazon, missed Switch 2 sales, Bloomberg says