NVIDIA expands Microsoft partnership with Blackwell GPUs for AI infrastructure
Investing.com - Rothschild Redburn downgraded Amazon.com (NASDAQ:AMZN) from Buy to Neutral on Tuesday, setting a price target of $250.00, despite the e-commerce giant’s "GREAT" overall financial health score according to InvestingPro data.
The downgrade reflects a more cautious outlook on Amazon Web Services (AWS), with the research firm noting that despite previous optimism about AWS’s positioning in the generative AI space, the backdrop has shifted. This comes even as 34 analysts have revised their earnings upwards for the upcoming period.
Rothschild Redburn previously maintained conviction that AWS was better positioned than Microsoft’s Azure due to its vertical integration and partnership with Anthropic, which it viewed as more attractive than OpenAI given its focus on software development.
The firm now believes AWS has already reaccelerated broadly as expected, leaving limited scope for meaningful upside relative to investor expectations.
Rothschild Redburn also highlighted that Amazon now faces a similar challenge to Microsoft, as generative AI remains dilutive to returns despite AWS capturing more value within the stack.
In other recent news, Amazon.com, Inc. has received a ’AA-’ rating from Fitch Ratings for its proposed unsecured notes issuance. The proceeds from these notes are intended for general corporate purposes, including funding working capital and capital expenditures. This rating reflects Amazon’s strong positions in global e-commerce and cloud computing services, along with its significant scale. Additionally, Amazon and Box, Inc. have entered a multi-year strategic collaboration to develop AI capabilities for enterprise content management, utilizing AWS’s AI services and infrastructure. This partnership aims to enhance existing AI capabilities delivered through Anthropic Claude and Amazon Titan.
Furthermore, Ford Motor has partnered with Amazon to launch a program that allows customers to shop for certified pre-owned vehicles online. This initiative will initially focus on markets in Los Angeles, Seattle, and Dallas, with approximately 20 dealers participating. In another development, Citizens has maintained its Market Outperform rating and $300 price target on Amazon, following the launch of its new AI-powered advertising tool, Ads Agent. This tool is designed to streamline advertising campaign management for businesses using Amazon’s platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.