Analysts Lower Price Targets on Amazon Stock (AMZN) After CEO Confirms Huge AI Spend
Wall Street analysts lowered their price targets on Amazon’s (AMZN) stock after CEO Andy Jassy confirmed massive artificial intelligence (AI)-related investments in his Annual Shareholder letter released on April 10. Analysts are also factoring in the potential impact of new tariffs on Amazon’s offerings, since the e-commerce retailer sources a large portion of its goods from countries like China. Meanwhile, Amazon is set to release its first-quarter Fiscal 2025 earnings on April 24.
During its Q4FY24 earnings call, Jassy noted that Amazon plans to spend over $100 billion on AI and data center infrastructure in 2025, with a major focus on its cloud segment, Amazon Web Services (AWS).
