{"id":111670,"date":"2024-10-08T05:23:55","date_gmt":"2024-10-07T22:23:55","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=111670"},"modified":"2024-10-08T05:23:55","modified_gmt":"2024-10-07T22:23:55","slug":"amazon-stock-sinks-as-wells-fargo-downgrades-shares","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=111670","title":{"rendered":"Amazon stock sinks as Wells Fargo downgrades shares"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Amazon (<a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/AMZN\" data-ylk=\"slk:AMZN;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">AMZN<\/a>) stock closed 3% lower Monday as Wells Fargo (<a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/WFC\" data-ylk=\"slk:WFC;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">WFC<\/a>) analysts downgraded shares, noting that the company&#8217;s strength in the cloud services market won\u2019t be enough to stave off other hurdles to its profit margins.<\/p>\n<p>Wells Fargo analyst Ken Gawrelski downgraded the stock from Overweight to Equal Weight and lowered his price target for the stock from $225 to $183.<\/p>\n<p>&#8220;AMZN has been a consistent positive revision story, but we believe factors pressure revisions in the near term,&#8221; he wrote in a note Monday.<\/p>\n<p>Challenges facing Amazon include rising competition from Walmart (<a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/WMT\" data-ylk=\"slk:WMT;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">WMT<\/a>), moderating contribution from its ad business to operating income, and high costs linked to its satellite broadband project.<\/p>\n<p>&#8220;Keeping these headwinds in context, Amazon remains a margin expansion story, just likely a more moderate margin expansion pace than the market expects,&#8221; Gawrelski wrote.<\/p>\n<p>Gawrelski is one of only five Wall Street analysts who don\u2019t recommend buying the popular stock, Bloomberg data shows. He sees shares priced at $187 over the next year. Meanwhile, Wall Street analysts see Amazon stock rising over 20% to about $220, according to Bloomberg consensus estimates.<\/p>\n<p>Amazon\u2019s most recent earnings report in early August <a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/amazon-stock-tumbles-8-as-profit-revenue-outlook-disappoints-165216566.html\" data-ylk=\"slk:fell short of Wall Street\u2019s forecasts;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">fell short of Wall Street\u2019s forecasts<\/a>. But strength in its cloud services division, Amazon Web Services, has helped make up for weaker-than-expected growth in retail sales. AWS houses Amazon&#8217;s AI services, and it generated $26.3 billion in revenue during the company\u2019s second fiscal quarter, ahead of analysts\u2019 forecasts and <a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/ir.aboutamazon.com\/news-release\/news-release-details\/2024\/Amazon.com-Announces-Second-Quarter-Results\/default.aspx\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:19% higher;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">19% higher<\/a> than the year before. Its advertising segment also saw revenue surge 20%, but its $12.8 billion in sales reported for the three months ended June 30 fell just short of expectations.<\/p>\n<p>Amazon is part of the so-called Magnificent Seven tech stocks that have posted massive gains over the past year thanks to investor hype over generative artificial intelligence. Amazon stock is up 42% from last year.<\/p>\n<p>The rapid expansion of Amazon Web Services has mirrored the AI trend. Amazon\u2019s AWS segment has launched a host of AI tools for developers and consumers over the past year. AWS is making more money renting space in its far-off data centers to customers looking to power hungry AI software. Amazon expects AI to generate billions of dollars of revenue in the coming years. But Wells Fargo thinks advancements in the AI space won\u2019t be enough to offset downsides from Amazon\u2019s other businesses, which could hinder its profit growth.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 640px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:67%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"Amazon website displayed on a laptop screen. (Photo by Jakub Porzycki\/NurPhoto via Getty Images)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/LvTnSMDOY8.IsA8GoeXxsA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-09\/d0fd7a90-84d8-11ef-93ff-cde382f9f5be\"\/><img decoding=\"async\" alt=\"Amazon website displayed on a laptop screen. (Photo by Jakub Porzycki\/NurPhoto via Getty Images)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/LvTnSMDOY8.IsA8GoeXxsA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-09\/d0fd7a90-84d8-11ef-93ff-cde382f9f5be\" class=\"caas-img\"\/><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Amazon website displayed on a laptop screen. (Jakub Porzycki\/NurPhoto via Getty Images)<span class=\"caption-credit\"> (NurPhoto via Getty Images)<\/span><\/figcaption><\/p>\n<\/figure>\n<p>Wells Fargo\u2019s Gawrelski said rising competition from Walmart\u2019s burgeoning fulfillment services business will put pressure on the fees Amazon can charge merchants for storing, packing, and shipping their products. Gawrelski noted that Walmart\u2019s fulfillment offerings for sellers are about 15% cheaper. If Amazon is forced to lower its fees, that would cut into its income from its retail segment.<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p>Meanwhile, Amazon\u2019s <a data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/www.aboutamazon.com\/news\/innovation-at-amazon\/what-is-amazon-project-kuiper\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Project Kuiper;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Project Kuiper<\/a>, its initiative to become a satellite broadband internet service provider and rival to SpaceX\u2019s Starlink, will shave $3 billion off its operating income in 2025 and 2026, Gawrelski estimated. He added that Amazon\u2019s advertising sales will grow at a \u201cmuch more modest pace\u201d between 2025 and 2027.<\/p>\n<p>Also on Monday, a judge <a data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/us-antitrust-case-against-amazon-170532587.html\" data-ylk=\"slk:ruled;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">ruled<\/a> that the Federal Trade Commission&#8217;s antitrust case against Amazon will move forward.<\/p>\n<p>Wells Fargo sees Amazon beating expectations in the third quarter. The company raised its third quarter outlook for Amazon\u2019s earnings per share from $1.18 to $1.26, well above the consensus estimate of $1.15, according to Bloomberg data.<\/p>\n<p><em>Laura Bratton is a reporter for Yahoo Finance.<\/em><\/p>\n<p><a data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/stock-market-news\/\" data-ylk=\"slk:Click here for the latest stock market news and in-depth analysis, including events that move stocks;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Click here for the latest stock market news and in-depth analysis, including events that move stocks<\/strong><\/a><\/p>\n<p><a data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:9;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 275px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:39%\"><a class=\"link\" href=\"https:\/\/stockstory.org\/high-quality\/top-6-to-buy-this-week?partner=yahoo&amp;utm_source=yahoo&amp;utm_medium=banner&amp;utm_campaign=top6\" data-ylk=\"\"><img decoding=\"async\" class=\"caas-img caas-lazy\" alt=\"StockStory aims to help individual investors beat the market.\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/JHx0p_cWLo9zq0nQX2Tolg--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTM3Nw--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-07\/17752130-4b4a-11ef-bff9-fd72468bde0c\"\/><img decoding=\"async\" alt=\"StockStory aims to help individual investors beat the market.\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/JHx0p_cWLo9zq0nQX2Tolg--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTM3Nw--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-07\/17752130-4b4a-11ef-bff9-fd72468bde0c\" class=\"caas-img\"\/><\/a><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">StockStory aims to help individual investors beat the market.<\/figcaption><\/p>\n<\/figure>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/amazon-stock-sinks-as-wells-fargo-downgrades-shares-200931181.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon (AMZN) stock closed 3% lower Monday as Wells Fargo (WFC) analysts downgraded shares, noting that the company&#8217;s strength in the cloud services market won\u2019t be enough to stave off &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=111670\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-111670","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/111670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=111670"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/111670\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=111670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=111670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=111670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}