According to the interface news app, the stock price of Amazon (AMZN.US) fell on Monday as analyst Ken Gawrelski from Wells Fargo & Co Securities rare downgraded the rating on the company from "shareholding" to "holding cautiously" and cut the target price significantly from $225 to $183. This adjustment reflects the market's concerns about Amazon's profit margin trends next year. Although the growth prospects of the cloud computing business are bullish, it seems insufficient to offset this negative impact. Nevertheless, Amazon's share price has still risen by 19% this year, slightly higher than the 18% increase in the Nasdaq 100 index.

In a detailed analysis, Gawrelski pointed out that although Amazon's performance shows a positive corrective trend, some factors in the short term may pressure this trend. He cautioned that even though the market was prepared for pressure on fourth-quarter revenue, profit margin expansion in the first half of 2025 may be limited. Positive estimate revisions are unlikely before the company's outlook in July 2025, with even Amazon's cloud computing business - Amazon Web Services (AWS) - not being sufficient to support it.

Nevertheless, Amazon remains a Wall Street favorite, with about 94% of analysts giving it a "buy" rating, with no analyst suggesting a sell. The average target price by analysts is around $219, indicating a 21% upside potential in the next 12 months.

This widespread optimism is largely attributed to the prospects of the AWS business, expected to benefit from the long-term growth in demand related to artificial intelligence.

Despite recent concerns about the company's spending on artificial intelligence investments, Bloomberg Industry Research estimates that by 2025, AWS sales growth could accelerate by 20%, exceeding the general expectation by about 200 basis points. The contribution of artificial intelligence will be more significant, while non-AI IT spending demand will tend to stabilize.