| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Amazon.com Inc (NASDAQ:AMZN) shares are dipping Tuesday after Rothschild & Co downgraded the stock from Buy to Neutral and maintained its $250 price target.
AMZN is feeling the pressure from bearish momentum. See what is driving the movement here.
What Happened: Rothschild & Co Redburn analyst Alexander Haissl, downgraded Amazon (NASDAQ:AMZN) and Microsoft Corp (NASDAQ:MSFT).
The downgrades come after a selloff in the tech-heavy Nasdaq 100, which has lost nearly $1.8 trillion since peaking in late October. Worries that AI stocks are overpriced have led investors to sell.
Tech companies are investing tens of billions of dollars to build AI infrastructure. The rate at which assets such as servers and graphics processing units depreciate and lose value over time has given investors a reason to be concerned.
According to Haissl, “Gen-AI margins already assume longer depreciation schedules of 5-6 years, versus just three years in the early cloud era.” He noted that, “this indicates that, on a like-for-like basis, pricing power is noticeably weaker and capital intensity for Gen-AI is significantly higher.”
Haissl mentioned that there’s a higher risk of an overbuild at companies like Amazon, “as Gen-AI scales on a bloated, inefficient stack, while cloud 1.0 scaled only after achieving efficiency.”
Contrasting Rothschild & Co’s rating, Rosenblatt and Mizuho maintained their positive outlook on Amazon, setting targets at $305.00 and $315.00 respectively on Nov. 4.
Earlier in the same month, Wells Fargo and Canaccord Genuity also maintained their bullish stand on Amazon. On Oct. 31, Wells Fargo kept its overweight rating, raising the target from $280.00 to $292.00. Similarly, Canaccord Genuity continued its buy rating, increasing its target from $280.00 to $300.00.
AMZN Price Action: Amazon.com shares were down 4.10% at $223.32 at the time of publication on Tuesday, according to Benzinga Pro.
Read Next:
Image: Volodymyr Plysiuk/Shutterstock
