Amazon Shares Down 7.2% YTD as Bernstein Cuts Target to $265
Amazon shares have fallen 2.9% over the past year and 7.2% year-to-date, while Bernstein cut its price target to $265 from $300 and Benchmark lowered its target to $275. Analysts flagged that $200 billion in planned capital expenditures offsets strong AWS growth and operating income.
1. Price Target Reductions
Bernstein lowered its price target to $265 from $300 citing insufficient justification for Amazon’s valuation despite maintaining an Outperform rating, while Benchmark trimmed its target to $275 from $295 and upheld its Buy recommendation.
2. Share Performance and Capex Concerns
Amazon stock has declined by 2.9% over the past year and by 7.2% year-to-date as investors weigh the impact of roughly $200 billion in planned capital expenditures against growth in AWS and operating income.
3. Jim Cramer’s Commentary
Jim Cramer noted the shift to negative free cash flow and argued that Amazon’s balance sheet is being misunderstood, highlighting concerns over data center investments and their perceived lack of job creation.