- Citi analyst Ronald Josey considers Amazon.com Inc AMZN vulnerable to softening consumer spending trends.
- While Josey still believes in the eCommerce and cloud giant, the recent slide for shares and growing inflation concerns prompted some reflection.
- “Given macro uncertainty and lack of near-term catalysts, Josey removed Amazon from Citi’s NAM Focus List.”
- Josey added that a weaker consumer in a more challenging macro environment could impact earnings moving forward.
- Still, Amazon remains a top pick for the internet sector and remains “Buy” rated with a price target of $4,100 (88.7% upside).
- Josey indicated the troubled consumer could prove positive for Amazon, in his view.
- Josey considers Amazon relatively well-positioned to reaccelerate retail growth in [the second half of 2022] with July’s Prime Day and the upcoming Back-to-School and Holiday shopping seasons as core catalysts.
- Price Action: AMZN shares traded lower by 1.80% at $2,107.71 on the last check Friday.
- Photo via Wikimedia Commons
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