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Amazon.com Inc had its price target cut by analysts at UBS Group in a research note issued on Wednesday.
UBS said it has reduced its price target for Amazon to $125 from $165, but it maintained its ‘buy’ recommendation.
Analysts at UBS highlighted: ‘deteriorating cloud checks around (1) customer efforts to optimize/trim cloud spend, (2) delays in new workload migration to avoid upfront costs, and (3) beyond the cyclical/macro, a shift into a more mature ’phase two‘ of market development, marked by slower growth of more difficult-to-migrate workloads.’
It therefore expects ‘meaningfully below consensus top line growth.’
However, UBS noted that retail trends finished the year on a strong note according to US census data.
According to data, advance monthly non-store retail sales grew 7.7% year-on-year in November. Versus 2019 levels, November non-store sales growth re accelerated to 74%, after declining to 67% in October.
Further, according to Mastercard SpendingPulse, US e-commerce also remained robust as online sales grew 10.6% year-on-year from November 1 to December 24, 2022, and US e-commerce made up 21.6% of total retail sales, up from 20.9% in 2021 and 20.6% in 2020.
Shares in Amazon were down 1.7% to $84.36 in New York on Wednesday morning.
By Sophie Rose; Alliance News reporter
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