Amazon.com Inc. (NASDAQ: AMZN ) stock fell nearly 2% Thursday as the stock lagged both the broader market and its sector despite bullish analyst views on Amazon Web Services and AI-driven cloud demand.
• Amazon.com shares are experiencing downward pressure. Why is AMZN stock retreating?
Rosenblatt Sees AWS Growth Outpacing Expectations
Rosenblatt analyst Scott Devitt initiated coverage of Amazon with a Buy rating and a $335 price target, arguing that investors undervalue the company’s AI opportunity.
Devitt expects AWS growth to reach 45% by the end of 2026, above the Street’s 38% estimate. He also projects AWS annual revenue will exceed $335 billion by 2028.
Citizens Says AI Demand Supports Cloud Growth
Citizens analyst Andrew Boone reiterated a Market Outperform rating and a $315 price target, pointing to strong growth at OpenAI and Anthropic as a positive indicator for AWS.
TrendingBoone expects rising AI usage to support cloud infrastructure demand and believes hyperscalers are unlikely to face significant excess server capacity.
Amazon shares remained under pressure even as the Nasdaq gained 1.01% and the S&P 500 rose 0.59%. Consumer Discretionary fell 0.7%, but Amazon still underperformed the sector.
Top ETF Exposure
Franklin Focused Dynamic Growth ETF (NASDAQ: FFOG ): 9.86% Weight Direxion Daily Magnificent 7 Bull 2X ETF (NYSE: QQQU ): 9.80% Weight Argent Large Cap ETF (NASDAQ: ABIG ): 9.20% WeightSignificance: Because Amazon carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
AMZN Price Action
AMZN Stock Price Activity: Amazon.com shares were down 1.58% at $256.18 at the time of publication on Thursday, according to Benzinga Pro data .
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