Amazon Faces Profit Concerns Amid Downgrade, Analysts Highlight Cloud and AI Potential, Project Kuiper

Amazon's stock has recently been downgraded due to concerns about its profit story, facing multiple headwinds. Despite this, analysts see significant potential in Amazon's cloud market share and AI capabilities, with Jefferies' Brent Thill highlighting the company's 50% market share in cloud services as a major advantage. The Wall Street Journal notes that Amazon's earnings machine might be taking a breather, posing a $2 trillion question about its future performance. Evercore ISI remains bullish on Amazon, reiterating an outperform rating and emphasizing the company's satellite opportunity with Project Kuiper, which is set to launch satellites in Q4 to support its satellite-based internet service.