Amazon’s Cloud Business Resilient to Spending Cuts, Morgan Stanley Says

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Amazon’s($NASDAQ:AMZN) cloud business is one of the most impressive and resilient businesses in the tech industry, according to a new report from Morgan Stanley. The report, authored by a team of analysts led by Brian Nowak, found that while a slowdown in spending is a looming issue for the tech sector as a whole, it is most pronounced in smaller private enterprises. Despite this, Amazon’s cloud business appears to be weathering the storm better than most. The report cites the company’s “superior scale, technology, and customer focus” as key reasons why it is weathering the spending slowdown better than its competitors. The report is bullish on Amazon’s long-term prospects, noting that the company is well-positioned to benefit from the continued growth of the cloud computing market. So what does this mean for Amazon’s market and earnings in the long term? It’s hard to say for sure, but the Morgan Stanley report is certainly positive news for the company. If Amazon can continue to grow its cloud business at a strong clip, it is likely to continue to be a major force in the tech industry for years to come.

Market Reaction

Until now news sentiment mostly are positive. on Tuesday, AMAZON.COM stock opened at $104.2 and closed at $102.3, down by 1.3% from prior closing price of 103.7. This is likely due to the negative news sentiment.

VI Analysis

Company’s fundamentals reflect its long term potential. For example, the below analysis on Amazon.com is made simple by VI app. According to VI’s Risk Rating, Amazon.com is a low risk investment in terms of financial and business aspects. However, there may be potential risks in some areas of the business and finances. You can check out what these areas are in our website.

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Summary

The stock price was down 1.3% the day after the announcement, but has since recovered. Morgan Stanley is bullish on Amazon and believes the stock is a good investment.