Amazon (NASDAQ:AMZN) was added to Wells Fargo's Signature Picks list in a note Tuesday, with analysts reiterating an Overweight rating and $159 price target on the stock.
In its second-quarter preview note of the tech giant, Wells Fargo said that Amazon Web Services (AWS) expectations are rising ahead of the print.
"Buy-side AWS expectations rising ahead of print, believe 2Q:23 'bar' is now in line w/Street +10% y/y growth vs. 8% two weeks ago. On July, AWS revenue growth now see buy-side expectation up 9-10% vs. prior 7-8%. Key is any constructive commentary on August, expected to comp the starting point for customer 'optimizations,'" the analysts wrote.
"We have rising conviction in our call for revenue reacceleration within 3Q. Despite higher expectations, see commitment to acceleration as +VE catalyst for the stock."
The analysts also told investors in the research note that the Amazon risk/reward is still favorable on the print.
After a 2% decline on Monday, Amazon shares are up 0.8% premarket Tuesday, trading around the $128.17 mark.