Investors may want to consider buying the dip in Amazon, according to some Wall Street analysts. After a disappointing second-quarter report that led to a more than 12% drop in the e-commerce giant’s stock price, analysts like Deutsche Bank’s Lee Horowitz believe that current levels represent a compelling entry point for one of the better earnings growth stories in large-cap tech. This sentiment is echoed by Bernstein’s Mark Shmulik, who sees the recent sell-off as an attractive opportunity for investors to step in and take advantage of Amazon’s long-term potential.
Despite the overall disappointing results, many analysts are optimistic about Amazon Web Services (AWS) division, which exceeded estimates and showed a strong 19% year-over-year growth. Susquehanna Financial Group’s Shyam Patil referred to this acceleration as a “bright spot” in the results, while Morgan Stanley’s Brian Nowak believes that the momentum in AWS will give more confidence in its forward positioning and future growth potential.
Mark Mahaney from Evercore ISI sees the accelerating AWS growth as one of the key catalysts for the stock, projecting a 20% year-over-year growth supported by gains in Prime Video Ads and AI workloads. Bank of America’s Justin Post named Amazon as the firm’s top large-cap pick, highlighting the opportunity within artificial intelligence and the growth potential of AWS.
Overall, analysts are bullish on Amazon’s long-term prospects, with expectations of continued growth in AWS and the company’s ability to leverage AI technology to strengthen its position in the market. With a consensus among Wall Street analysts for the stock to outperform, now may be a good time for investors to consider adding Amazon to their portfolio. Visit Extreme Investor Network for more insights and analysis on investing in tech stocks like Amazon.