Amazon stock falls again after price target cut by 20% at UBS


Shares of Inc. AMZN, -5.23% slumped 4.8% in afternoon trading Tuesday, adding to Monday’s 2.8% drop, after UBS analyst Lloyd Walmsley cut his stock price target to $167 from $209, citing “some risks” to the ecommerce and cloud giant’s financial outlook depending no the macroeconomic environment. Walmsley lowered his revenue estimate for 2022 to $523.2 billion from $526.7 billion and for 2023 to $598.7 billion from $615.9 billion. Walmsley kept his rating at buy, however, as his lowered price target still implied about 43% upside from current levels, and his longer-term outlook remained upbeat. “We see risk to the consensus revenue and operating income outlook near term, through for investors with longer-term time horizons, we think the current risk/reward looks compelling,” Walmsley wrote in a note to clients. “We do see margins improving in 2023 as the company cuts fulfillment and logistics capacity, sees COVID costs continue to come out of the P&< [profit-and-loss], benefits from a full year of the Prime price hikes and the fuel surcharges.” Amazon’s stock has tumbled 35.4% year to date, while the S&P 500 SPX, -1.97% has dropped 19.4%.

This article was originally published by Read the original article here.

Previous articleThe Big Move: I’m close to retirement and I own 2 homes. If I sell my primary home, I’ll get $100K. My plan is to rent a place for $1,400. Is that a good idea?
Next articleHere is what it takes for true contrarian investors to outsmart the stock market


Please enter your comment!
Please enter your name here