RBC Capital analyst Brad Erickson raised the firm’s price target on Amazon.com (AMZN) to $265 from $255 and keeps an Outperform rating on the shares. The company’s Q4 results were mixed with a slight miss on third-party and Ads , along with an implied $100B+ capex guide, outweighing solid AWS and continued EBIT outperformance, the analyst tells investors in a research note. Amazon.com shares are “crowded” and the AI “spend money to make money” debate will undoubtedly continue, but the combo of AWS’s high margin growth and further network cost efficiencies have the company poised to continue growing earnings at a level supportive of this valuation, the firm added.
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