Bank of America Lowers Amazon Stock Target to $190 Amid Earnings Reassessment

Bank of America has adjusted its price target for Amazon (AMZN) to $190, a reduction of approximately 13.6% from its previous $220 estimate. The update follows a reassessment of Amazon’s cloud segment performance, where revenue growth in the most recent quarter lagged analyst projections, rising only 11.2% year-over-year compared to a projected 14.5%. This slowdown, coupled with intensified competition from Microsoft Azure and Google Cloud, has prompted the firm to temper near-term expectations for the e-commerce and infrastructure giant. The adjustment comes ahead of Amazon’s upcoming Q4 earnings report, which will provide further clarity on profitability trends and capital allocation plans. Analysts note that while Amazon’s retail operations continue to show resilience, margin pressure from logistics and advertising investments is weighing on overall earnings. The firm also highlighted that the company’s AI-driven services, while expanding, have yet to translate into significant revenue momentum in the current fiscal cycle. Despite the downward revision, Bank of America maintains a 'Buy' rating on the stock, emphasizing Amazon’s dominant market share in e-commerce and its long-term strategic investments in AI and logistics automation. The report also notes that Apple (AAPL) and energy markets, tracked via CL=F, remain in focus as macro indicators, but Amazon’s performance is increasingly seen as a leading barometer for digital consumer trends and enterprise cloud adoption. The change in target price has prompted moderate trading activity in AMZN shares, with a 1.2% dip in pre-market trading. Investors in the consumer discretionary sector are re-evaluating valuation metrics, particularly for high-growth tech stocks with elevated P/E ratios. The shift reflects a broader market recalibration toward profitability over pure top-line expansion in the tech space.