Investors may want to consider buying Amazon on the dip, according to some Wall Street analysts. “We believe current levels present an attractive entry point for one of the fastest-growing revenue stocks among big technology companies,” Deutsche Bank’s Lee Horowitz wrote. The comments come after Amazon’s disappointing second-quarter earnings. The e-commerce giant’s shares fell more than 12% on Friday after revenue fell short of expectations and it issued weak guidance. Deutsche Bank’s Horowitz, who has a buy recommendation on the stock, is not the only one urging investors to take advantage of Friday’s sell-off. “Looking at the bigger picture, Amazon has already fulfilled its potential,” said Bernstein’s Mark Shmulik, arguing that a reset would be an attractive entry point for investors. The analyst has an outperform recommendation on the stock. AWS ‘Silver Lining’ Despite Thursday’s disappointing earnings, many Wall Street analysts are finding upside in the company’s Amazon Web Services division. The segment beat expectations and grew 19% year over year. Many expect the business to continue to gain momentum, with Susquehanna Financial Group’s Shyam Patil calling the acceleration a “silver lining” for the company’s performance. Patil rates the stock positive. Morgan Stanley’s Brian Nowak added that the “acceleration should give the market more confidence in AWS’s positive positioning (in the nascent GenAI ecosystem) and future growth.” The analyst maintained his overweight rating and $240 price target, implying a 30% upside from Thursday’s closing price. Evercore ISI’s Mark Mahaney called AWS’s accelerating growth one of the stock’s “three fundamental catalysts.” He predicts AWS can achieve 20% year-over-year growth, buoyed by increased Prime Video advertising and AI workloads in the second half of the year. Mahaney rates Amazon an Outperform. Bank of America’s Justin Post named the stock his firm’s top large-cap pick, citing AWS’s rapid growth and opportunity in artificial intelligence. “We are encouraged by AWS’ growth and its position within the overall GenAI tech stack, and believe AWS will continue to close the gap on GenAI with other major players,” said JPMorgan’s Doug Anmuth, who predicts growth of 20% in the third quarter and 21% in the fourth quarter of this year. Anmuth rates the stock overweight.
Wall Street analysts think investors should buy Amazon’s stock as it dips
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