Bank of America Securities (BofA) has reaffirmed its Buy rating on Amazon.com Inc. (NASDAQ:AMZN) stock, maintaining a steady price target of $225.00.

Amazon’s recent underperformance against Walmart and Microsoft Corporation (NASDAQ:MSFT) was attributed to factors such as higher exposure to the Chinese market and a smaller emphasis on grocery sales. However, Amazon’s cloud computing arm, AWS, was mentioned as a potential drag on the company’s valuation.

BofA Securities also highlighted mixed investor sentiment, ranging from short-term optimism following Amazon CEO Andy Jassy‘s recent interview to worries about how tariffs and a possible economic slowdown could affect the company’s retail and advertising businesses.

Despite these concerns, BofA Securities maintains confidence in Amazon’s strategic position. By reaffirming its Buy rating, the firm signals an ongoing optimistic view of the company's stock performance.

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Further, Amazon followed in the footsteps of Microsoft and paused some of its data center leasing talks, especially in international markets. This move, coupled with the tariff-induced uncertainty, has led to concerns about the company’s future performance.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.