Jefferies analysts raised their price target on Amazon (NASDAQ:) to $225 from $190, citing positive comments since Amazon Day.
The investment bank hosted eight industry experts and former Amazon employees to discuss the latest trends in the company’s key segments, such as its core market business, Amazon Prime and its cloud division.
On the latter, cloud expert Jefferies sees an optimistic outlook, noting a positive shift as multi-cloud strategies gain traction.
They emphasize that improving budgets, restarting previously frozen projects and reducing optimization are helping to create a more favorable environment for cloud services. Although AWS lags behind Azure, especially in artificial intelligence capabilities, Bedrock is gaining noticeable momentum, according to an industry expert.
“Our expert also notes that more and more companies are seeking to implement multi-cloud technologies, mainly due to the need for capacity,” the analysts say.
“In addition, they emphasized that OCI does not do anything better than the large cloud providers, but noted that they are aggressive in pricing in an attempt to gain share,” they added.
Meanwhile, Prime Video experts remain optimistic about the streaming service’s potential to drive connected TV (CTV) advertising revenue, citing Amazon’s extensive proprietary data as a significant advantage.
However, they also note the challenge of increasing user engagement to match the level of competing streaming services.
“While AMZN’s Thursday Night Football program helps drive weekly viewership during football season, our expert believes AMZN could be losing up to $40 million per game.”