0809 ET - Investors are underestimating the Ebit pressures that Amazon will go through as a result of its investment cycle on supply chain, logistics and AI, among other bets, Raymond James analysts say in a research note. While there is a positive long-term potential from these investments, the analysts say they lack sufficient visibility in the investment levels/return on investment in 2025 and 2026. "Improving monetization momentum would make us more constructive, while higher-than-expected investments could make us more cautious." Raymond James lowers its recommendation on the stock to outperform from strong buy and cuts its target price to $195 a share from $275 a share previously. Shares fall 1.7% to $169.55 in pre-market trading. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
April 21, 2025 08:09 ET (12:09 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.