Amazon stock slides on Friday in the midst of concern about AI consumption, a soft forecast

• Amazon’s shares fell on Friday after Tech Giant said he plans to spend more than $ 100 billion this year to support his AI goals and offer a softer sales forecast from the expected.

• Analysts remained great to be lush due to the trajectory of shares, but some reduced their prices for the goals after the invitation of earnings on Thursday.

• Amazon shares have fallen on Friday about 4%, although even with losses on Friday they have acquired almost a third of their value in the last 12 months.
  

Amazon (AMZN) The shares have fallen on Friday, and some analysts have reduced their price goals due to concern due to the plans of a technological giant to increase consumption on artificial intelligence and a softer forecast of sales from the expected.

Executive Director Andy Jassy suggested on Thursday during a call to earning a company that Amazon expects Spend more than $ 100 billion In capital expenditures this year, most of which were to go to the construction of AI infrastructure to increase the capacity.

Analysts remained great to be lush due to the trajectory of shares, but some have lowered their goals after being invited on Thursday on Thursday.

Citi analysts, who held a “buy” rating for the shares, said that the spread of Amazon’s AIna infrastructure could help “alleviate the capacity limit” to grow faster. However, analysts reduced their goal for shares to $ 273 with $ 275, citing Amazon’s weaker sales forecast than expected as well as consumption plans.

JPMORGAN analysts said they were “comfortable” with Amazon’s larger consumption, “Given AMZN, a very clear path to AI monutization via AWS.” However, JPMORGAN has similarly reduced its target goal to $ 270 with $ 280, lowering its net sales assessments for 2025 and 2026.

Amazon’s plans to strengthen consumption on AI follows similar moves of several of his large technological peers. Google parental alphabet (Googl) earlier this week said he would spend $ 75 billion in capital expenditures This year to support your AI capacity to expand. Last week the target (Target) said that he was planning to invest 60 billion up to $ 65 billion This year and Microsoft (Msft) said that he was planning to spend 80 billion dollars about infrastructure in its 2025 fiscal year.

Hundreds of billions of dollars spent on AI from large technological heavy weights “this year” puts even more importance on the ability of each platform to show material incremental engagement, “said Morgan Stanley analysts. They maintained a price of $ 280 and an “overweight” rating for Amazon shares.

Amazon shares have fallen on Friday about 4% to close to $ 229.15, although even with losses on Friday they have received almost a third of their value in the last 12 months.

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