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Amazon Stock: Analysts Cut Price Targets After Revenue Miss

Many Wall Street analysts lowered their price targets and forecasts for Amazon Friday after it missed revenue estimates and offered weak guidance.
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Shares of Amazon  (AMZN) - Get Amazon.com, Inc. Report were dropping Friday as analysts  adjusted their forecasts and price targets for the online retail giant following the company's rare revenue miss and weak guidance Thursday. 

JPMorgan maintained its overweight rating while lowering its price target to $4,100 from $4,600 per share. However, analyst Doug Anmuth sees Amazon "still running at a compound annual growth rate of 25%-30%, even while Wall Street estimates come down.

Credit Suisse maintained its Outperform rating while lowering its price target to $4,700 from $4,850 per share as the firm sees "the guidance parameters for 3Q21 reflect a near-15% deceleration to FX neutral GMV growth vs 2Q21" which could be the company underpromising, according to analyst Stephen Ju. 

Morgan Stanley maintained an overweight rating while lowering its price target to $4,500 from $4,300 per share. 

"AMZN’s slower than expected retail revenue growth and lower profitability (from surging investment) send estimates lower today. Over the long-term we see these investments leading to deeper core retail and AWS moats (why we remain bullish)," analyst Brian Nowak said.

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Analysts at Jefferies maintained their buy rating and $4,200 price target while lowering their 2021 earnings expectations to $51.44 per share from $56.24 per share and their 2022 EPS estimate to $70.27 per share from $76.48 per share.

"Core-Retail decelerated from difficult comps and increased mobility. Despite 3Q revenue guidance coming in below consensus, our revised estimates imply Core-Retail growth will remain above pre-pandemic levels on a 2-year basis," analyst Brent Thill said. 

Stifel maintained both its buy rating and $4,400 price target. 

"While Amazon missed overall topline numbers, the shortfall was primarily concentrated in Online Stores which includes first party sales (the lowest multiple business line). Importantly, The higher margin AWS, advertising, subscription, and 3P business lines outperformed our expectations," analyst Scott Devitt said. 

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