Amazon just bounced hard off earnings that missed estimates, but the debate tearing Wall Street apart has nothing to do with the quarter itself. The real question is whether AWS profits can keep pace with a spending plan that is…
Wall Street is warming back up to the cloud story at Amazon (NASDAQ:AMZN | AMZN Price Prediction) after a rocky first reaction to its latest quarter. Amazon stock is at $251.77, up 5% in morning trading. That rebound follows the initial reaction to quarterly results that missed expectations. The gain also lifts Amazon stock to a 9% advance year to date.
Phillip Securities upgraded Amazon to Buy from Accumulate on November 2 and raised its price target to $330 from $320. The bulls see the bounce as dip-buying on accelerating Amazon Web Services (AWS) growth and a reassuring outlook, while skeptics keep returning to heavy AI spending and negative free cash flow.
