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Amazon (AMZN) Enters AI-Assisted Coding Arena | AMZN Stock News

Published 1 month ago2 minute read

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Amazon Web Services, known by its ticker AMZN, is in the process of creating its own AI-powered coding tool. This new service is expected to provide features akin to those found in Anyspher’s Cursor. The development highlights a growing trend in Silicon Valley where AI-driven coding startups are capturing significant interest from key industry players, including OpenAI, supported by Microsoft (MSFT).

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Based on the one-year price targets offered by 67 analysts, the average target price for Amazon.com Inc (AMZN, Financial) is $245.94 with a high estimate of $295.46 and a low estimate of $195.00. The average target implies an upside of 29.28% from the current price of $190.24. More detailed estimate data can be found on the Amazon.com Inc (AMZN) Forecast page.

Based on the consensus recommendation from 73 brokerage firms, Amazon.com Inc's (AMZN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Amazon.com Inc (AMZN, Financial) in one year is $184.80, suggesting a downside of 2.86% from the current price of $190.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amazon.com Inc (AMZN) Summary page.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Amazon is facing increased competition in the AI space, with the need to invest heavily in AI infrastructure impacting short-term margins.
  • The company is experiencing fluctuations in AWS operating margins, which have varied significantly over the past two years.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.


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