Amazon’s disappointing quarterly results signaled to analysts that even the giants are not immune to a macro downturn. The tech giant reported results after the bell Thursday, falling short of analysts’ revenue expectations. Amazon also signaled a slowdown in its Amazon Web Services division, which recorded its slowest growth since at least 2014 and shared weaker-than-expected guidance for the current period. The last time the stock fell more than 13% in pre-market trading. Analysts have slashed their targets and price estimates to reflect a broader macro slowdown at the e-commerce giant in the wake of the results, with analysts at Deutsche Bank and Wolfe Research suggesting It’s time to “take it down”. However, most analysts remain optimistic about the company’s long-term trajectory, better sustaining performance and a buy rating on the stock. “Combine that with the wobbly revenue dynamics of both AWS and Retail, and suddenly Amazon’s hideout doesn’t look good,” Mark Shmulik of Bernstein wrote in a note to customers on Friday. of Bernstein wrote in a note to clients on Friday, believing that a “redemption story” lies ahead for the company and equated the recent technology crisis to “trying to turn a freighter great.” “The good news here is that the story isn’t broken, it’s only pushed out into 2023 while Q4 could get worse before it gets better… pretty much Google 2.0,” the analyst said. write. That said, analysts across the board have slashed their targets and price estimates to reflect broader macro pressures. Goldman Sachs analyst Eric Sheridan said in a note to clients on Friday that the bank remained confident in the company’s long-term trajectory and its cloud computing business despite the results. He cut the company’s price target to $165 from $175 a share, showing the stock up nearly 50%. “Based on our work, we remain convinced of the multi-year expansion of operating margins for Amazon thanks to improved Ecommerce margins, at least,” he wrote. more international losses and higher margins than contributions from AWS and advertising”. Brad Erickson of RBC Capital Markets calls the company a “long-term secular winner” with strong earnings strength and margin leverage once it can weather macro pressures. Morgan Stanley’s Brian Nowak said that despite the current setbacks, expect Amazon to bounce back as a winner out of the recession, Morgan Stanley’s Brian Nowak said in a note to clients on Thursday. Six. “AMZN is seeing a more consumer/business slowdown than thought, resulting in lower revenue and flatter volume-based efficiency,” he said, while also reducing Price target down $140 per share. “But we think AMZN is positioned to share through the downturn, considering low future investment and potential for cost rationalization.” Bank of America’s Justin Post said the weak outlook at Amazon could also signal that a dreaded recession is looming. He cut his price target on the stock to $137 from $157 a share, suggesting a 23% gain for the stock. Deepak Mathivanan of Wolfe Research said in a note to clients: “It is clear from the 4Q guidance that AMZN cannot be immune to the challenging macroeconomic environment around the world. “However, we think the company is well-positioned to navigate a changing demand environment with minimal disruption to operations and potentially capture market share from small-scale players. ” Shares are down more than 33% this year. – CNBC’s Michael Bloom contributed reporting
