Amazon.com initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of Amazon.com with an Outperform rating and $200 price target. AWS will “lead the foundational and middle layer of the gen AI/ML stack,” while secular Cloud tailwinds will continue in 2024 and beyond, the analyst tells investors. On the retail side of the business, Amazon is positioned to invest in smaller same -day buildings with lower capex needs while improving customer experience levels unlocks free cash flow, the analyst added.