Amazon bull thesis ‘very much intact’ despite AWS concerns - Evercore
Julie Clopper
There is still significant long-term upside for Amazon (NASDAQ:AMZN) even if headwinds hamper performance in the near term, according to Evercore ISI.

Equity analyst Mark Mahaney advised clients to remain patient as the company navigates near-term choppiness. He expects the retail operation to see strong margin recovery in the first half of 2023, helping aid a return to strong free cash flow generation after âunusual lossesâ in the past two years. 

âWe view Amazon as a classic DHG (Dislocated High Quality) stock. The AMZN Long Thesis is very much intact, with Amazon having a leading position against three very large secular growth opportunities,â Mahaney told clients, highlighting strength in e-commerce, advertising, and cloud computing. 

However, margin stabilization for the AWS business may take time, especially as the startup industry deals with the ramifications of the Silicon Valley Bank (SIVB) blow-up and overall macro softness impacts enterprise spending. As such, Mahaney lowered his price target to $155 from $160 due to cautiousness on the outlook for the AWS business while maintaining a Buy rating on the stock.

Shares of Amazon (AMZN) slipped 1.24% in morning trading on Monday.
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