Bernstein Stays Bullish on Amazon (AMZN) With ‘Outperform’ Rating

Amazon.com, Inc. (NASDAQ:AMZN) is one of the AI Stocks on Wall Street’s Radar. On July 17, Bernstein raised price targets and estimates for several internet stocks. These stocks have rallied strongly entering Q2, but the outlook remains uncertain.

“Internet stocks have rebounded sharply along with the broader market,” Bernstein said, noting that “the group feels more own-able into earnings” owing to modest GMV acceleration and cautious guidance from management teams.

The firm noted that the rebound for these stocks may be fragile

“With multiples back up to (or above) January levels, it’s a tougher question of ‘what next’ coming out of earnings.”

However, Q3 “could offer some semblance of normalcy.”

Particularly for Amazon, the firm reiterated the stock as “Outperform,” stating that it is a top idea at the firm.

“In the near term, AWS is back in focus, and we expect to see top-line acceleration driven by improving performance in core and modest AI-related benefits as GPU supply constraints eased intra quarter.”

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $248 implies an 11% upside, however, the Street-high target of $300 implies an upside of 34%.

Amazon.com Inc. (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

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Disclosure: None.