In Las Vegas last week, Amazon.com, Inc. (NASDAQ:AMZN) Web Services hosted its annual customer conference: re:Invent. More than 30,000 people attended the event coupled with over the 50,000 estimated to have attended online with eyes peeled to hear of the 29 new significant features and services coming to play.
From William Blair analyst Ryan Domyancic‘s standpoint, with the online retail giant’s plan to deliver 1,000 new features, or essentially averaging out to three per day, it has become clear that from the company’s forays into artificial intelligence, the Internet of Things (IoT), analytics, data onboarding, security, development, and even management, one key judgment rings true: “Amazon remains the undisputed market leader from an innovation perspective.”
Therefore, with heightened bullish assurance on the heels of the conference, the analyst reiterates an Outperform rating on shares of AMZN without listing a price target.
Domyancic believes, “The overall announcements and commentary from the company throughout the conference combined with positive feedback from our conversations with several customers reaffirmed our thesis that AWS is successfully leveraging its differentiated technology, trusted vendor status, and robust innovation cadence to sustain its dominant market presence.”
Ultimately, the analyst recognizes solid buying opportunity for these shares as Amazon continues to reign from its “feature breadth” to “innovation cadence” that continue to win customers over to the platform.
“On the basis of insights gained that portend strong expansion activity within existing customers, a healthy rate of adoption by large enterprises, and more rational pricing behavior, we see AWS as well-positioned to deliver upside to near-term revenue and margin expectations. Given our view that AWS accounts for close to 60% of Amazon’s valuation, we see potential for appreciation in shares,” Domyancic concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Ryan Domyancic is ranked #2,193 out of 4,256 analysts. Domyancic has a 50% success rate and gains 6.5% in his annual returns. When recommending AMZN, Domyancic earns 0.6% in average profits on the stock.
TipRanks analytics exhibit AMZN as a Strong Buy. Out of 35 analysts polled in the last 3 months by TipRanks, 33 are bullish on Amazon stock and 2 remain sidelined. With a return potential of 24%, the stock’s consensus target price stands at $947.84.