Amazon now ‘solidly a top pick’ at Goldman Sachs
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Goldman Sachs is increasingly bullish on Amazon (NASDAQ:AMZN) despite some weak performance since the companyâs early February earnings results.

In a sweeping note covering the internet space, the bankâs analysts suggested that concerns of an AWS slowdown are overwrought while e-commerce margins look as though they will improve into 2023. As such, the team said that Amazon is ânow solidly our top pick for the remainder of 2023 from current trading levels.â

The potential for a shift in the trajectory of AWS growth is seen as a key catalyst into 2023. As the teamâs long-term view of cloud computing is unchanged, the anticipated pivot for the segment is seen as a potential key tailwind in coming quarters. 

âA common thread across AMZNâs AWS and [Alphabet] (GOOGL) Google Cloud was a continuation of the theme of enterprise customers looking to optimize spend into an uncertain macro backdrop,â the bankâs analysts wrote to clients. âIn particular to AMZN, any visibility into a bottoming of AWS growth would likely be a key catalyst for the shares & increased industry conversations in the past few weeks point to signs that the optimization theme (in terms of changed customer behavior) may have peaked around 2023 economic concerns and budget planning in late 2022.â

Alphabet (GOOGL) offers a similar risk/reward to Amazon (AMZN), according to the team. The noted cited the California-based search giant as âamong the very best companies positioned for future computing cycles tied to AI/ML, augmented reality & quantum computingâ in their coverage.
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