BCA warns Fed consensus at risk as Hassett era looms
Investing.com - Mizuho initiated coverage on Amazon.com (NASDAQ:AMZN) with an Outperform rating and a $300 price target, representing 37% upside potential. According to InvestingPro data, Amazon currently trades at a P/E ratio of 33.8x and has demonstrated strong financial health with an overall score of "GOOD."
The research firm cited expectations for Amazon Web Services (AWS) growth to accelerate to 22% in 2026, compared to the current Bloomberg consensus estimate of 20%, as capacity comes online in the second half of 2025 and throughout 2026. This growth projection builds upon Amazon’s impressive revenue CAGR of 18% over the past five years.
Mizuho highlighted Amazon’s anchor generative AI client Anthropic as a key driver for increased compute demand, noting potential for "meaningful upside" to AWS growth as generative AI applications proliferate and inference demand scales.
While Mizuho views Street estimates for North American retail growth in 2026 as "slightly high" at 8.5% compared to its own 7% projection, the firm believes AWS reacceleration and retail margin improvement will be more significant factors for the stock.
In its analysis, Mizuho outlined a bull case with 59% upside based on 2027 metrics, compared to a 27% downside in its bear case scenario.
In other recent news, Amazon.com, Inc. has agreed to pay a substantial $2.5 billion to settle charges from the Federal Trade Commission. The charges allege that Amazon enrolled millions of consumers in Prime subscriptions without their consent and made it difficult to cancel these subscriptions. This settlement includes a $1 billion civil penalty and $1.5 billion in consumer refunds, affecting an estimated 35 million people. Meanwhile, Amazon’s autonomous-vehicle subsidiary, Zoox, is seeking regulatory exemptions to operate self-driving cars without traditional driving controls, indicating potential plans for broader commercial deployment. Additionally, TD Cowen has reiterated a Buy rating on Amazon stock, highlighting the company’s new generative AI tools introduced at its Accelerate third-party seller conference. In another development, Amazon is expanding its logistics network to support merchants selling on Walmart, Shopify, and SHEIN platforms, enhancing its Multi-Channel Fulfillment service. Lastly, Turkey’s broadcast watchdog has fined Amazon Prime and other streaming platforms for allegedly violating "national and moral values" with certain content, as reported by the state-run Anadolu Agency.
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