US Stocks Move | Amazon falls 1% pre-market due to SaaS business valuation compression; Bank of America lowers target price

Glonghui, February 2｜Amazon (AMZN.US) fell 1.15% in pre-market trading, quoted at $236.56. According to reports, ahead of Amazon’s Q4 earnings release scheduled for February 5 (Eastern Time), Bank of America issued a research report stating that due to the compression of SaaS business valuation multiples, it has lowered its target price from $303 to $286. However, the bank reiterated its “Buy” rating on Amazon, citing accelerated growth in its cloud computing business AWS, resilience in its retail segment, and improved sentiment in the artificial intelligence (AI) market, all of which are expected to drive a rebound in the company’s valuation. Looking ahead to the first quarter, Bank of America expects Amazon’s management to provide relatively cautious guidance, forecasting revenue between $173 billion and $178 billion, and operating profit between $18.5 billion and $22.5 billion, compared to market expectations of $175.4 billion in revenue and $22.1 billion in profit. However, the bank emphasized that Amazon has repeatedly outperformed its own guidance in the past, and if Q4 results exceed expectations, first-quarter guidance may be raised. (Glonghui)