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Investing.com - Goldman Sachs has maintained its Buy rating and $290.00 price target on Amazon.com (NASDAQ:AMZN) following the company’s annual AWS re:Invent conference. This aligns with the broader analyst consensus, as InvestingPro data shows Amazon has a strong buy recommendation (1.33) with analyst targets ranging from $245 to $360.
The investment firm highlighted that Amazon’s management team presented new products and services at the conference, demonstrating how they envision the evolution of the public cloud industry, particularly regarding artificial intelligence, machine learning, and custom silicon development.
Goldman Sachs views the recent earnings report and AWS re:Invent conference as positive steps toward improving investor sentiment around AWS’s positioning in the AI market, supporting Amazon’s ability to re-accelerate revenue growth and highlighting AWS’s role as the AI theme expands beyond foundational models. The tech giant has already demonstrated solid growth, with revenue increasing 11.48% over the last twelve months to $691.33 billion.
The firm noted similarities between AWS’s approach to AI opportunities and Amazon’s successful eCommerce strategy, including offering an array of supply options, ease of purchase and partnership, matching demand and supply at scale, and maintaining a singular focus on customer service as a platform.
Goldman Sachs remains convinced that AWS can achieve a revenue compound annual growth rate exceeding 20% over the next three years, with the company strategically positioning itself to capitalize on artificial intelligence similar to how it leveraged previous technological shifts in compute, storage, and database services. InvestingPro analysis indicates Amazon is slightly undervalued at current levels, with a PEG ratio of just 0.62 suggesting attractive valuation relative to growth. Discover 10+ more exclusive ProTips and comprehensive analysis in Amazon’s Pro Research Report, available with an InvestingPro subscription.
In other recent news, Amazon has agreed to pay €180 million to settle a tax dispute with Italian authorities. This settlement is part of a broader investigation into the company’s tax practices in Italy. Additionally, Amazon Web Services (AWS) has been selected by Zilliz as its strategic cloud provider to support its global vector database solutions, enhancing low-latency access across multiple regions. AWS also announced the launch of new EC2 M9g instances powered by the Graviton5 chip, which promises a 25% performance boost over previous models.
In a related development, RTX Corp’s Raytheon business has expanded its collaboration with AWS to improve satellite data processing and mission control operations, aiming to enhance national security capabilities. Rosenblatt Securities has maintained its Buy rating on Amazon, citing growth in AWS and setting a price target of $305. These updates reflect significant developments in Amazon’s operations and partnerships, offering insights into the company’s strategic directions and financial commitments.
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