Amazon Cut as Wells Fargo Warns Cloud Strength 'Not Enough'.

Amazon.com Inc. shares fell in premarket trading after Wells Fargo Securities downgraded the stock due to concerns over margin trends and the unlikelihood of growth in the cloud computing business compensating for it. The analyst cut the stock to equal weight from overweight and lowered the price target. While Amazon is one of the most popular stocks on Wall Street, with a majority of analysts recommending a buy rating, the downgrade reflects concerns about margin expansion and limited visibility into positive estimate revisions. The optimism surrounding Amazon is largely driven by its AWS business, which is expected to benefit from long-term demand tailwinds related to artificial intelligence. [Extracted from the article]