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

Amazon.com Inc. shares fell after Wells Fargo Securities downgraded the stock due to concerns over margin trends and the potential inability of the cloud computing business to compensate for them. The analyst cut the stock to equal weight from overweight and lowered the price target. While Amazon is highly regarded on Wall Street, with the majority of analysts holding 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 the strength of its Amazon Web Services (AWS) business, which is expected to benefit from long-term demand tailwinds related to artificial intelligence. However, there are near-term concerns about the company's spending on AI-related investments. [Extracted from the article]