It seems that analysts are no longer in agreement when it comes to Amazon Inc. (NASDAQ: AMZN) stock.
A BNP Paribas Exane analyst gave the stock a sell rating. This represents the first time someone has been bearish on the stock in two years.
Predictions on the stock include the company’s capital expenditures which are predicted to be higher this year as well as predictions that inflation shocks will hurt the stock.
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Stefan Slowinski, BNP Paribas analyst, sees the stock reaching the price of $2,800, a decrease of 17% from the current $3,295.95 price.
“The stock has been underperforming big tech peers and we expect that to continue,” said Slowinski, who’s based in London and covers European and U.S. software and services companies.
Performance and predictions
The stock has been performing well in 2022 erasing this year’s losses in the last trading session in March, rallying 24% from the low point it hit in the same month. Slowinski sees the stock as underperforming its big-tech peers.
Most of the other analysts who predict prices for the next 12 months give the stock a strong buy rating. Some notable analysts like Goldman Sachs Group Inc. (GS) and Bank of America (BAC) have named Amazon their top pic for 2022.
The average price target analysts have on the stock is $4,144 which would represent a 27.11% increase over the current price in the next 12 months.
In pre-market trading, the stock fell 0.4% at the moment of writing. Predictions of e-commerce suffering due to rising inflation should be offset by its Amazon Web Services cloud business as predicted by analysts.
As Finbold reported earlier, Amazon AWS accounts for 33% of the global cloud infrastructure service market.
It will be interesting to track developments around Amazon and see if more analysts join in changing their ratings regarding the stock.
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