#Amazon #Stock #Climbs #Analysts #Raise #Price #Targets #Soaring #Growth
Key takeaways
- Several analysts raised their price targets for Amazon after the company’s third-quarter results beat Street expectations.
- CEO Andy Jassy said the company’s artificial intelligence (AI) business is growing three times faster than Amazon Web Services (AWS) did at a similar stage of development.
- Amazon expects to increase its capital expenditures this year, most of which will go toward technology infrastructure to support artificial intelligence.
Amazon (AMZN) shares jumped on Friday as several analysts raised their price targets for the e-commerce giant following third-quarter results that beat expectations.
Wedbush raised its price target to $250 from $225, indicating Amazon’s AI business is growing. On the company’s earnings call, Chief Executive Officer (CEO) Andy Jassy said Amazon’s AI business is growing three times faster than Amazon Web Services (AWS), its cloud computing division, at the same stage of its development.
Cloud revenues jumped 19% year-on-year to more than $27 billion amid growing demand for artificial intelligence. In terms of investment, Amazon said it expects to spend $75 billion in capital expenditures this year, most of which will go toward technology infrastructure to support demand for artificial intelligence, according to a transcript of the earnings call provided by AlphaSense.
JPMorgan analysts are ‘comfortable’ with Amazon’s spending
JPMorgan analysts are “comfortable” with the increase in expenses given Amazon’s “very clear path to monetizing AI through AWS,” the company said, raising their price target to $250 from $230.
Amazon shares rose 7% to $199.68 in late morning trading on Friday and are up more than 31% year to date.
#Amazon #Stock #Climbs #Analysts #Raise #Price #Targets #Soaring #Growth
