What's Going On With Amazon Stock Thursday

Amazon.Com, Inc AMZN shares are trading higher after Loop Capital reportedly issued a bullish commentary.

Rob Sanderson from Loop Capital Markets maintained a Buy rating on the stock, with a price target of $180.00.

Morgan Stanley analyst Brian Nowak reiterated Amazon.com with an Overweight and a $150 price target.

Also Read: Following Roomba Acquisition, Amazon Eyes London's Ocado for Next Major Tech Investment

Nowak highlights that the pace of AI innovation and interest remains rapid, though investors view AWS as disadvantaged. The analyst thinks this is incorrect as AWS has a full AI tech stack and a history of industry-specific innovation, with some industry-specific AI tools already emerging and ~7% of AWS' 1.5mn data/analytics customers already buying AI-related products. 

He sees more industry-specific offerings and uses cases across AWS' AI tools, driving outsized growth. 

Nowak looks for further announcements at AWS' Summit Series events and AWS Invent on November 27 to help turn investor sentiment. 

While his base case AWS forecast calls for a 16% FY22-FY25 CAGR, the extent to which AI tools drive new adoption and use cases for companies could cause his AWS growth to grow at a 24% CAGR (FY22-FY25), leading to further upward revisions and multiple expansion from the current more bearish AWS investor sentiment. 

Also, JP Morgan reiterated a Buy rating on the stock with a price target of $145. The firm hailed Amazon.com as 'well-established' as the third largest online ad platform.

The stock, which has gained 51% YTD, saw a spike in session volume to 39 million vs. the 100-day average of 62 million.

Price Action: AMZN shares traded higher by 3.88% at $129.67 on the last check Thursday.

Photo by Tony Webster via Flickr