Amazon Cut as Wells Fargo Warns Cloud Strength ‘Not Enough’
- Wells Fargo becomes one of few firms without a buy rating
- Shares have modestly outperformed this year on AI tailwinds
An Amazon package locker in Arlington, Virginia.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Amazon.com Inc. shares fell on Monday, following a rare analyst downgrade that cited concerns over margin trends into next year, which growth in the cloud computing business is unlikely to compensate for.
Wells Fargo Securities cut the stock to equal weight from overweight, with analyst Ken Gawrelski becoming one of the few analysts tracked by Bloomberg who doesn’t have a buy recommendation on the stock. He also cut his price target from $225 to $183, one of the lowest on Wall Street.