Amazon (AMZN) was recently reviewed by Wall Street analyst Mark Kelley from Stifel Nicolaus. Kelley maintains a neutral stance on the stock and has set a price target of $200.00.
Kelley’s rating on Amazon is influenced by several positive factors. The company exceeded expectations in terms of revenues and operating income in the last quarter of 2023, indicating strong financial health and operational efficiency. Kelley is confident that margin improvements will continue throughout 2024 due to more efficient regionalization in the fulfillment network and ongoing reductions in service costs. He is also optimistic about the growth rate of Amazon Web Services (AWS), which is expected to accelerate further in the coming year, as well as the consistently outperforming operating margins.
Despite the anticipation of higher capital expenditures in 2024, Kelley believes that Amazon’s core businesses demonstrate underlying strengths. The AWS segment has experienced accelerating growth, benefiting from reduced customer cost optimizations and larger commitments. Additionally, the company has achieved significant cost savings on a per-unit basis, leading to lower prices and potentially higher demand. The expansion of North American margins, strength in advertising, and robust viewership figures for Thursday Night Football further support Kelley’s positive outlook.
In another report released today, Bernstein also maintained a Buy rating on Amazon with a $200.00 price target.
Amazon.com, Inc. provides online retail shopping services and generates revenue from cloud computing services. It operates through three business segments: North America, International, and Amazon Web Services (AWS). The company was founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA.
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