Wells Fargo downgrades Amazon on slowing growth expectations, Walmart competition

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Wells Fargo downgrades

This is the hidden content, please

• Sign In
• or
• Sign Up

on slowing growth expectations, Walmart competition

This is the hidden content, please

• Sign In
• or
• Sign Up

may be over for now, according to Wells Fargo. Analyst Ken Gawrelski downgraded the e-commerce giant to equal weight from overweight. He also slashed his price target to $183 from $225, implying downside of nearly 2% from Friday’s close. Gawrelski noted that

This is the hidden content, please

• Sign In
• or
• Sign Up

’s consistently better-than-expected growth has led analysts to repeatedly positively revise earnings estimates since the second quarter of last year. Since June 30, 2023, shares have soared 43%, outperforming a 29% S & P 500 gain. AMZN .SPX mountain 2023-06-30 AMZN vs SPX since June 30, 2023 Going forward, that may not be the case. In June 2023, “we saw

This is the hidden content, please

• Sign In
• or
• Sign Up

on the cusp of significant positive inflections in both key business lines: AWS and North America Retail. These calls have played out,” the analyst said.

This is the hidden content, please

• Sign In
• or
• Sign Up

Web Services is its cloud unit. “

This is the hidden content, please

• Sign In
• or
• Sign Up

is likely still a solid margin expansion story over the long term,” he added. “But as

This is the hidden content, please

• Sign In
• or
• Sign Up

management has said multiple times, margin expansion won’t be linear. We, and market consensus, likely became a bit exuberant in our extrapolation of margin expansion trends in 2023 and early ’24 to ’25 and beyond forecasts.” Gawrelski also pointed to increasing competition from Walmart as a headwind. “While there were always smaller, independent providers of fulfillment services to

This is the hidden content, please

• Sign In
• or
• Sign Up

merchants, Walmart’s entry into this market changes the competitive field,” he said. “In addition to cheaper fulfillment pricing than

This is the hidden content, please

• Sign In
• or
• Sign Up

, Walmart can match Prime’s shipping speeds. Walmart has constructed a national ‘next generation’ fulfillment center network which provides next day or two-day shipping to 75% of the U.S. population. Plus, Walmart can leverage its network of retail locations to facilitate last mile fulfillment.” The downgrade puts Gawrelski in the ********* among analysts covering

This is the hidden content, please

• Sign In
• or
• Sign Up

. Sixty-three of 66 analysts have a buy or strong buy rating on the stock, and only three rate it as a hold, LSEG data shows.

This is the hidden content, please

• Sign In
• or
• Sign Up

shares fell more than 1% in the premarket following the downgrade. Year to date, the stock is up more than 22%.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Wells #Fargo #downgrades #

This is the hidden content, please

• Sign In
• or
• Sign Up

#slowing #growth #expectations #Walmart #competition

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up