Latest news with #MarkMahaney
Yahoo
a day ago
- Business
- Yahoo
Analyst Says Amazon.com (AMZN) Cloud Business Needs to Show ‘Acceleration' for Stock Outperformance
Inc (NASDAQ:AMZN) is one of the . Mark Mahaney, head of internet research at Evercore ISI, recently said Amazon needs to show further AWS growth for stock outperformance. 'The retail business is important for Inc (NASDAQ:AMZN). It's a necessary condition. I think for the stock to really outperform though, it will be the cloud business. You need to see acceleration in that in the back half of the year. I think we're going to see that. If we're wrong on that, the stock's not going to outperform from here. The retail business also needs to show this continued expansion in margins. And you know the—I know we've sort of waxed off and on and now we're off about tariff risk, but it's still there and you know, Inc (NASDAQ:AMZN) need—and Amazon's kind of the canary in the coal mine. Shoot, they may be the whole coal mine. I mean they're going to give us a read into, and we're going to be tracking pricing, for prices on products on Inc (NASDAQ:AMZN) and, you know, not these four days but as we go through the back half of the year and, you know, there is risk here.' AWS revenue jumped 16.9% year over year in the last reported quarter, while its operating income rose 22.6%. AWS has now surpassed a $100 billion annual run rate, playing a central role in helping businesses modernize infrastructure, reduce costs, and accelerate innovation. Ttatty / The market often overlooks Amazon's ads business, which is generating more than $10 billion in quarterly revenue despite being built from scratch. In the first quarter, ad revenue rose 19% from a year earlier to $13.9 billion, continuing to support overall profitability. According to some Wall Street estimates, Amazon is projected to earn $6.20 per share in 2025 and $8.95 in 2027, reflecting 44.4% earnings growth over two years. Lakehouse Global Growth Fund stated the following regarding Inc. (NASDAQ:AMZN) in its May 2025 investor letter: ' Inc. (NASDAQ:AMZN) reported a solid quarterly result with net sales up 9% year-on-year (10% in constant currency terms) to $155.7 billion and operating profit up 20% to $18.4 billion. The company's core e-commerce business remained resilient in the face of potential tariffs, with management noting they hadn't seen any material change in consumer buying behaviour as at the end of April. Amazon web services (AWS) grew 17% to $29.3 billion which was a slight deceleration from the 19% delivered last quarter. Whilst this seems disappointing at first blush, management reiterated that demand is very strong they are still capacity constrained. Artificial intelligence (AI) continues to be a key growth driver with AI workloads growing in excess of 100% year-on-year on AWS. Overall, it was a positive result, and we remain confident that the company is set to deliver many years of solid revenue growth and margin expansion.' While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
a day ago
- Business
- Yahoo
Analyst Says Amazon.com (AMZN) Cloud Business Needs to Show ‘Acceleration' for Stock Outperformance
Inc (NASDAQ:AMZN) is one of the . Mark Mahaney, head of internet research at Evercore ISI, recently said Amazon needs to show further AWS growth for stock outperformance. 'The retail business is important for Inc (NASDAQ:AMZN). It's a necessary condition. I think for the stock to really outperform though, it will be the cloud business. You need to see acceleration in that in the back half of the year. I think we're going to see that. If we're wrong on that, the stock's not going to outperform from here. The retail business also needs to show this continued expansion in margins. And you know the—I know we've sort of waxed off and on and now we're off about tariff risk, but it's still there and you know, Inc (NASDAQ:AMZN) need—and Amazon's kind of the canary in the coal mine. Shoot, they may be the whole coal mine. I mean they're going to give us a read into, and we're going to be tracking pricing, for prices on products on Inc (NASDAQ:AMZN) and, you know, not these four days but as we go through the back half of the year and, you know, there is risk here.' AWS revenue jumped 16.9% year over year in the last reported quarter, while its operating income rose 22.6%. AWS has now surpassed a $100 billion annual run rate, playing a central role in helping businesses modernize infrastructure, reduce costs, and accelerate innovation. Ttatty / The market often overlooks Amazon's ads business, which is generating more than $10 billion in quarterly revenue despite being built from scratch. In the first quarter, ad revenue rose 19% from a year earlier to $13.9 billion, continuing to support overall profitability. According to some Wall Street estimates, Amazon is projected to earn $6.20 per share in 2025 and $8.95 in 2027, reflecting 44.4% earnings growth over two years. Lakehouse Global Growth Fund stated the following regarding Inc. (NASDAQ:AMZN) in its May 2025 investor letter: ' Inc. (NASDAQ:AMZN) reported a solid quarterly result with net sales up 9% year-on-year (10% in constant currency terms) to $155.7 billion and operating profit up 20% to $18.4 billion. The company's core e-commerce business remained resilient in the face of potential tariffs, with management noting they hadn't seen any material change in consumer buying behaviour as at the end of April. Amazon web services (AWS) grew 17% to $29.3 billion which was a slight deceleration from the 19% delivered last quarter. Whilst this seems disappointing at first blush, management reiterated that demand is very strong they are still capacity constrained. Artificial intelligence (AI) continues to be a key growth driver with AI workloads growing in excess of 100% year-on-year on AWS. Overall, it was a positive result, and we remain confident that the company is set to deliver many years of solid revenue growth and margin expansion.' While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Should You Buy the Post-Earnings Dip in Netflix Stock?
Netflix (NFLX) came in ahead of estimates in the second quarter as its ad-supported tier continued to gain traction. However, shares of the entertainment giant closed down some 5% on Friday. Investors are bailing on NFLX shares even though the streaming giant raised its full-year guidance as well mostly because of valuation concerns. More News from Barchart Insider Trading Alert: Here's Who Bought Nvidia and AMD Stock Before the U.S. Chip Deal with China Dear Tesla Stock Fans, Mark Your Calendars for July 23 Robinhood Keeps Hitting New Highs. How Should You Play HOOD Stock Here? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Despite today's decline, Netflix stock is up nearly 50% versus its year-to-date low set in mid-January. Should You Buy Netflix Stock on the Post-Earnings Dip? In a post-earnings interview with CNBC, Mark Mahaney, the head of internet research at Evercore ISI, agreed that Netflix reported a decent quarter but said 'I'm not entirely sure there's reason to aggressively buy the stock here.' While Mahaney remains bullish on NFLX shares for the longer term, with a price target of $1,350 indicating potential upside of more than 10% from current levels, 'at a 40 P/E multiple, they're at the upper end of their valuation range' already, meaning limited upside in the near term, he added. What Will Drive Future Growth for NFLX Shares? According to Mahaney, the streaming stock is leading the content game and that too by a fair margin, but 'the question is: What else is going to be new?' On Friday, the analyst argued NFLX management must focus on sports and live events to drive future growth. Plus, he expects advertising to account for a bigger chunk of the company's revenue moving forward. His view echoes Mark Zagorski, the chief executive of DoubleVerify, who sees Netflix as offering the 'holy trinity' – quality, performance, and scale – to advertisers in 2025. In a separate interview, Zagorski said artificial intelligence (AI) was positively contributing to the entertainment firm's advertising strategy as well, which could bring an even higher price tag to Netflix shares in the second half of this year. How to Play Netflix at Current Levels? Despite a strong earnings print, investors are recommended waiting for a deeper pullback before loading up on Netflix stock as other Wall Street analysts also share Mahaney's concerns related to its valuation. While the consensus rating on NFLX shares currently sits at 'Moderate Buy,' the mean target of about $1,249 indicates potential upside of only 3% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
4 days ago
- Business
- CNBC
No reason to aggressively buy Netflix here: Evercore ISI's Mahaney as stock slides on earnings
Mark Mahaney, Evercore ISI head of internet research, joins 'Closing Bell Overtime' to talk Netflix quarterly results and how to play to stock at these levels.
Yahoo
11-07-2025
- Business
- Yahoo
Why Wall Street analysts think Alphabet may be the most overlooked Big Tech stock
Alphabet stock has slid this year as concerns rise about AI eroding its search business. However, some analysts on Wall Street see the year-to-date drop as a buying opportunity. Here's why they believe Alphabet is the most unloved Big Tech stock. When it comes to AI, Nvidia may be the star of the show, but some Wall Street analysts have their eyes on another Big Tech name: Alphabet. It's certainly a less popular pick this. year. Investors have soured on Alphabet in recent months on concerns that AI could disrupt the company's core search business. With platforms such as ChatGPT, users can directly access answers to their questions without clicking on links, reducing ad exposure for Google. Alphabet stock is down 6% year-to-date, but that dip is exactly what makes it appealing, according to Mark Mahaney, Evercore ISI's head of internet research. On CNBC on Thursday, Mahaney called Alphabet one of the best "dislocated high quality" names in the market. Fears about AI have resulted in Alphabet shares trading at a discount, but Mahaney thinks the perceived threat to search is overblown, pointing out Alphabet's robust business lines with YouTube, Google Cloud, and Waymo. In a worst-case scenario where search does indeed slow down, growth in these other segments could drive upside to the stock. Eric Sheridan, co-business unit leader of the TMT group at Goldman Sachs, agrees. He believes Alphabet presents one of the most compelling risk-reward profiles among the large-cap tech companies. "There is a debate around search, but increasingly with the value of YouTube, Cloud, and Waymo going higher inside the broader Alphabet, we think you're paying less and less for search at the same time that a wall of worry is rising," Sheridan told Business Insider. Investors might also be overlooking the strategic advantage Alphabet has with its Gemini AI platform, according to Sheridan: "Putting Gemini into mail, search, Chrome, Maps, YouTube — all of these avenues of distribution could be an advantage for Alphabet in an AI first-world that are being undervalued," he said. Additionally, Alphabet might have a line of defense against AI queries: commercial search, or searches where users are looking to buy products. These searches are considered the most high-value in terms of revenue and advertiser interest, according to Bank of America. Even with AI overviews, users looking to make a purchase are still likely to use commercial search to compare options and click links. "Today, we have not highlighted any risk to that commercial query share, and definitely not to commercial query monetization," Sheridan said. Evercore's quarterly surveys haven't revealed any change in Alphabet's share of commercial search queries. In fact, Mahaney has actually seen a slight uptick in volume. "If Google can accelerate its paid click growth a bit, if they can sustain this double-digit paid search revenue growth, I think over time that will kind of wear down the existential search risk," Mahaney said. Read the original article on Business Insider Sign in to access your portfolio
