After a rare downgrade, cases specifically with Goldman Sachs, Amazon.com Inc. (AMZN)
shares fell in premarket trading on Monday. Wells Fargo Securities lowered the
recommendations on Amazon.com Inc’s stock from “overweight” to the equivalent of “neutral”,
worrying about one-year profit margin. So, Analyst Ken Gawrelski pointed out that the rise in
Amazon’s over the cloud market may be inadequate at combatting these hurdles.
This change was accompanied by a downgrade of the stock’s price estimate by Gawrelski from
$225 to $183, the lowest in the street. In response, Amazon’s shares were down 1.4% to $184
before the opening bell, but they are still up 23% this year, slightly ahead of the Nasdaq 100
Index’s 19%.
This is one of just a handful of ‘sell-side’ recommendations on Amazon – and suggests that there
may be issues on the horizon for the company’s outlook.