'The global leader in cloud computing:' Here's what analysts are saying about Amazon's impressive quarter

Amazon founder Jeff Bezos. (Photo by Leah Puttkammer/Getty Images)

Amazon‘s fourth-quarter earnings report topped analyst expectations as its web services business continued to explode. Shares soared 6% on the news, and are trading north of $US1,450 Friday.

The ecommerce behemoth posted earnings of $US3.75 share, beating the expected $US1.83 by a wide margin. Revenue of $US60.5 billion topped the $US59.85 billion that Wall Street was anticipating. Amazon Web Services posted sales of $US5.1 billion, up 44.6% year-over-year.

Amazon’s impressive report has Wall Street analysts excited. They see AWS as a key driver of the company’s future growth while there seems to be minimal concern about the tech giant’s advertising and ecommerce businesses.

Here’s what the analysts on Wall Street are saying:

Morgan Stanley: BULLISH

Rating: Overweight

Price Target: $US1,500

Comment: “We see AMZN’s ability to invest and execute in new categories (expanding the TAM as they have been), leading to faster and more sustained gross profit growth.”


Rating: Buy

Price Target: $US1,620

Comment: “We continue to reiterate our stance that Amazon is a core holding to gain exposure to secular growth trends in eCommerce (driven by geographic expansion & category expansion), cloud computing media consumption, digital advertising & AI voice assistants.”

Davidson: BULLISH

Rating: Buy

Price Target: $US1,800

Comment: “Considering the outperformance in AWS and third-party unit sales, which we believe represent two of highest margin businesses, we were not surprised by the better-than-expected adj. EBITDA and EPS. Amazon faces significant succession risk. AWS accounts for a majority of its revenue growth and profits, and is facing increasing competitive pressure from Google and Microsoft.”


Rating: Outperform

Price Target: $US1,600

Comment: “AMZN remains our Top Pick. We continue believe there remains a large runway for growth {in AWS}, particularly given the rate at which the company is rolling out new services and features.”

Oppenheimer: BULLISH

Rating: Outperform

Price Target: $US1,650

Comment: “The company continues to gain share of global ecommerce with its deep product selection, low-cost express delivery through its Prime program, and breakthrough success of Kindle, Prime Video and Amazon Music. AMZN’s Web Services segment is now the global leader in cloud computing, and has significant value.”

Macquarie: BULLISH

Rating: Outperform

Price Target: $US1,750

Comment: “The growth in Prime members, sales of Echo and Fire devices, execution at Whole Foods, initiatives in private label, AWS growth, India, and more expansion of Prime benefits will all be key drivers in ’18 and beyond.”


The stock market just got another powerful reminder of the risks of getting Amazon’d

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