Amazon stock sinks as Wells Fargo downgrades shares

Published On Oct 7, 2024, 4:09 PM

Amazon's stock fell 3% after Wells Fargo downgraded it from Overweight to Equal Weight, lowering the price target from $225 to $183. The downgrade is due to potential pressure on profit margins from competition (especially from Walmart), moderating ad contributions, and high costs related to its satellite broadband initiative. Despite challenges, Amazon's AWS segment shows strong performance, forecasting a rise in earnings per share for the upcoming quarter.

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Stock Forecasts

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Negative

With the downgrade by Wells Fargo and the potential for competitive pressures to impact margins, Amazon's stock may continue to face downward pressure in the short term. The analyst forecasts a more moderate growth scenario, which contrasts with more optimistic market expectations.

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