Key Takeaways
- Amazon shares jumped 5% today after Phillip Securities upgraded the stock to Buy with a $330 price target.
- The upgrade looks right: AWS grew 39% last quarter, and the stock trades at its lowest forward P/E in five years.
- The worry is cash: Amazon, Alphabet and Meta all spent more than their operations brought in last quarter.
- Nvidia stands to gain from the heavier spending, and Amazon’s 2027 capex outlook in February is the next test.
Amazon (AMZN) stock jumped 5% today after Phillip Securities upgraded it to Buy with a $330 price target.
Investors sold it off on Friday over AI spending that outran its cash, as it did at Alphabet (GOOG) and Meta Platforms (META). Plenty of that spending ends up at Nvidia (NVDA).
Phillip sees the demand behind the spending
Phillip analyst Helena Wang pointed to Amazon’s demand visibility.
AWS revenue grew 39% to $46.0 billion last quarter, and its backlog reached $578 billion. CEO Andy Jassy also
