Amazon Job Cuts Boost Profitability and Morgan Stanley Names it a Top Stock Pick

  • Post category:Stock Trading
  • Reading time:8 mins read
Get Email Alerts and Follow Us:

Amazon stock is traded on the Nasdaq exchange under the symbol AMZN. Amazon is one of the largest and most successful companies in the world. It is a multinational technology, retail, and e-commerce company that offers a wide range of products and services.

Amazon Job Cuts

The most recent job cuts made by Amazon should increase its profitability.

Amazon will eliminate 9,000 jobs from its cloud computing, human resources, advertising, and Twitch livestreaming divisions, according to CEO Andy Jassy’s internal memo to staff last week. The earlier round, which led to the loss of more than 18,000 jobs, was followed by this one.

Given that Amazon Web Services was one of the business sectors targeted in the most recent round of job cuts, its profitability may specifically benefit.

Morgan Stanley Amazon Stock Is Top Pick

Brian Nowak, a Morgan Stanley analyst, reaffirmed Amazon as his top pick. His $150 price target implies a 53 percent upside. He predicted that job cuts would result in an increase of about 100 and 50 basis points in Amazon Web Services’ second-quarter and full-year 2023 earnings before interest and taxes, respectively. He predicted that the EBIT margin for 2024 would increase by about 75 basis points. The majority of the reductions, in his opinion, come from AWS/Advertising, which should protect AWS EBIT through near-term deceleration and improve long-term leverage.

Amazon Stock Is In an Uptrend Channel

Amazon stock has been trading in an uptrend channel since January 2023. The stock is in a technical weak downtrend as bottom feeders enter a long position.

Amazon stock chart on March 27 2023 in an uptrend channel
Amazon stock chart on March 27, 2023, in an uptrend channel


Is investing in Amazon stock risky?

Yes, investing in any stock is risky, and Amazon stock is no exception. The stock market can be volatile, and stock prices can go down as well as up. It’s important to understand the risks before investing in any stock.

How can I buy Amazon stock?

You can buy Amazon stock through an online broker, such as TD Ameritrade, E-Trade, or Schwab. You can also invest in an ETF that tracks the performance of Amazon stock, such as the ARK Innovation ETF (ARKQ).

What should I consider before investing in Amazon stock?

Before investing in Amazon stock, it’s important to consider the company’s fundamentals, such as its revenue, profits, and growth rate. You should also consider the company’s competitive position in the market and its track record of innovation.

What is the outlook for Amazon stock?

The outlook for Amazon stock is generally positive. The company has been growing at a rapid pace for many years, and the stock is relatively low volatility, which means it can be a good choice for conservative investors that want protection from a Black Swan event.

Do any famous investors own Amazon stock?

Yes, there are several famous investors who own Amazon stock. Some of them include Warren Buffett of Berkshire Hathaway, Jeff Vinik of Vinik Asset Management, and Stephen Mandel of Lone Pine Capital.

Who are the largest shareholders in Amazon stock?

The largest shareholders of Amazon stock are founder and CEO Jeff Bezos, investment management firms Vanguard Group, and BlackRock, and investment bank and financial services company JPMorgan Chase.
Get Email Alerts and Follow Us: