Stocks
Piper Sandler Reiterates Overweight Rating on Amazon Amid AWS Focus
Piper Sandler has reiterated its Overweight rating on Amazon.com (NASDAQ:) with a price target of $320.00.
The firm notes that Amazon shows consistency in return on invested capital among major technology companies, averaging 17% from 2018 to 2025 and 12% over the last twelve months.
Average ROIC is projected to be 14% in 2026, but Piper Sandler attributes this to deterioration in Alphabet (NASDAQ:) and Meta's (NASDAQ:) return on invested capital, down 27 percentage points and 26 percentage points respectively from 2024 to 2027.
The firm contrasts Amazon's approach with its competitors', noting that Alphabet and Meta are spending on building frontier models, whereas Amazon is focused on its AWS cloud computing business.