These are top 10 stocks traded on the Robinhood UK platform in July
Investing.com - UBS has reiterated its Buy rating and $271.00 price target on Amazon.com (NASDAQ:AMZN), a $2.49 trillion market cap company with a "GREAT" financial health score according to InvestingPro, following the company’s recent quarterly results that showed mixed performance in its cloud division.
UBS analyst Stephen Ju noted that Amazon Web Services (AWS) posted growth of approximately 17% year-over-year, slightly below some investor expectations of 18%. The analyst characterized the market reaction as "extreme," pointing out that the difference between meeting or missing expectations amounted to just $10 million in revenue on a $31 billion quarterly revenue base, yet resulted in a significant market cap decrease. This comes as Amazon maintains strong overall revenue growth of 10.08% and has received upward earnings revisions from 10 analysts for the upcoming period.
The firm acknowledged investor concerns about the lack of explicit confirmation regarding potential revenue acceleration for AWS, even as capital expenditure budgets for the division increase. UBS estimates Amazon will invest approximately $250 billion in capital expenditures between 2024 and 2026.
Despite cloud growth concerns, UBS highlighted better-than-expected performance in Amazon’s e-commerce and advertising segments, which contributed to the firm’s estimates moving slightly higher overall.
UBS described Amazon as a "coiled spring" and recommended buying the stock on the recent pullback, expressing confidence in the company’s capital allocation strategy based on its historical performance in this area. Trading near its 52-week high with a P/E ratio of 37.31, InvestingPro analysis suggests Amazon is slightly undervalued, with 12 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Amazon’s second-quarter performance in 2025 has significantly exceeded market expectations, with revenue reaching $167.7 billion and earnings per share (EPS) of $1.68, surpassing the anticipated $162.05 billion and $1.32, respectively. The company’s profit also came in at $19.2 billion, beating Street expectations of $17 billion. Analysts from Barclays (LON:BARC), BofA Securities, DA Davidson, and Goldman Sachs have all responded positively to these results by raising their price targets for Amazon. Barclays increased its target to $275, citing the potential of Amazon’s AI capabilities, while BofA Securities set a target of $272, highlighting strong retail growth. DA Davidson raised its target to $265, maintaining a Buy rating, and Goldman Sachs adjusted its target to $240, focusing on Amazon’s strategic efforts in e-commerce and perishables. These developments reflect a broad consensus among analysts on Amazon’s robust financial health and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.