According to Ken Gawrelski, the strength of the cloud computing business, Amazon Web Services (AWS), alone is not enough.
According to the expert, Amazon was «a consistently positive revision story» but there are now factors that «put pressure on revisions in the near term . » «While the market is more prepared for fourth-quarter pressure on operating income, we caution that margin expansion could also be limited in the first half of 2025 ,» he added.
Gawrelski also indicated that there is limited visibility on the resumption of positive estimate revisions through the company’s July 2025 outlook . Meanwhile, the strength of the cloud computing business, Amazon Web Services (AWS), alone is not enough.
However, despite Wells Fargo Securities’ analysis, much of the market is confident in the potential of Amazon , now led by Andy Jassy. In fact, nearly 94% of the experts who follow the technology company have a rating equivalent to buy on its shares and none recommend selling them.
The optimism is due to the long-term strength of AWS, which could experience demand tailwinds from AI. Indeed, Bloomberg Intelligence said the division’s earnings «look set to accelerate 20%» by 2025, about 200 basis points above the median projection .
For these reasons, Amazon shares could recover and surpass the highs of a few months ago. To do so, they only need to rise «barely» 11%. In this case, the market capitalization would once again exceed US$ 2.1 trillion .
