Amid concerns about AI spending, Amazon Stock Slide will slide on Friday to make a soft forecast

• Amazon’s stock fell on Friday after Tech Giant said it plans to spend more than $100 billion this year to support AI goals and will offer softer than expected sales forecasts.

• Analysts can be largely bullish on the upward trajectory of stocks, but some have lowered their price targets after Thursday’s revenue call.

• Amazon’s stock fell about 4% on Friday, but despite Friday’s losses, it has earned almost a third of its value over the past 12 months.
  

Amazon (amzn) Stocks fell on Friday, with some analysts lowering their price target amid concerns over the tech giant’s plan to increase spending on artificial intelligence. Softer than expected sales forecast.

CEO Andy Jussey suggested on the company’s revenue call that Amazon is expecting Thursday Spends over $100 billion Most of this year’s capital expenditure is set to increase capacity towards building AI infrastructure.

Analysts have been largely bullish on the upward trajectory of stocks, but some have lowered their price targets after Thursday’s revenue call.

Citi analysts who maintained a “buy” rating on the stock said that Amazon’s AI infrastructure expansion will help AW not grow faster by “relieving capacity constraints.” Sales forecasts and its spending plans are weaker than Amazon expect.

JPMorgan analysts said they are “comfortable” for Amazon’s higher spending given Amzn’s very clear path to AI monetization through AWS. However, JPMorgan similarly reduced its price target from $280 to $270, reducing its net sales for 2025 and 2026.

Amazon’s plan to increase spending on AI follows a similar move by several major high-tech peers. Google Parent Alphabet (googl) Early this week He said he would spend $75 billion in Capital expenditure This year we will support expanding AI capacity. Last week, Meta (Meta) said he plans to invest $60 billion to $65 billion This year, and Microsoft (msft) said it was going to be spent $80 billion Regarding infrastructure for 2025.

The hundreds of billions spent on big tech heavyweight AI this year “makes each platform even more important to its ability to demonstrate material progressive engagement,” analysts at Morgan Stanley said. . They maintained a $280 price target and “overweight” rating for Amazon stocks.

Amazon’s stock fell around 4% on Friday to close at $229.15, but despite Friday’s losses, it has earned almost a third of its value over the past 12 months.

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