This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEE410VN_M.jpg
Amazon (NASDAQ:AMZN) shares were maintained at Outperform with a $130 price target at Oppenheimer on Wednesday, with analysts stating that the firm is confident in its 23/’24 AWS revenue estimates ahead of the tech giant‘s earnings release after the close on Thursday, February 2.
The estimates are 3% and 5% below consensus due to:
“Customer revenue shortfalls began in September. Our channel checks confirm further revenue pressure from all the above, particularly from more term contracts, with peak impacts hitting mid-2023,” wrote the analysts.
“AWS has stayed true to its S-Curve since 2011, but secular demand is
showing cracks from macro. Over the past year, we have reduced our FY23/FY24 revenue estimates 12%/14% to $94B/$110B from $106B/$128B. Law of large numbers will pressure y/y growth, but we believe sequential growth in 2024–2025 could surprise to the upside when headwinds roll off,” added the analysts.
They also state that despite the near-term headwinds, the firm remains “very positive” on AWS long term.
