Analysts broadly defended bullish theses on Amazon (NASDAQ:AMZN) regardless of a deep post-earnings plunge for the tech large.

Shares of the Seattle-based tech large fell practically 9% in afternoon buying and selling after a blended earnings end result on Thursday night. Alongside with a messy EPS determine, slower than anticipated development within the cash-cow AWS enterprise seemed to be a significant hangup for the market.

“Whereas AMZN’s retail enterprise is on the structural upswing, AWS continues to face incremental

macro headwinds as companies try to optimize their cloud spend,” Morgan Stanley analyst Brian Nowak famous. “AWS softness is being seen throughout industries as mortgage firms (i.e. housing), crypto, and promoting companies had been notably weak.”

That mentioned, he doesn’t assume that the softness is prone to persist for the long run.

“In our view, these near-term development headwinds are extra transitory and macro pushed,” he concluded. “We acknowledge that cleanly modeling development throughout these risky intervals is difficult, however we don’t see a change within the multi-year alternative.”

As such, he maintained an Outperform ranking and high decide standing for the inventory. Moreover, he raised EBIT estimates based mostly upon what he sees as sturdy retail efficiency, taking his value goal to $150 from $140.

A give attention to effectivity additionally led analysts at Cowen, Benchmark, UBS, and Financial institution of America to lift revenue estimates for the upcoming quarters, with steerage assumed to be conservative. Likewise, Financial institution of America indicated that the trajectory for cloud development is “bent not damaged.”

Lastly, Wells Fargo reiterated Amazon as one in all its “Signature Picks”

“We stay assured on AMZN’s skill to drive penetration of extra retail product classes and key rising geographies, keep its lead in cloud computing and execute in opposition to extra alternatives similar to internet advertising (throughout each endemic and non-endemic advertiser classes), which we consider provide the corporate compelling development and revenue traits,” fairness analyst Brian Fitzgerald wrote.

He maintained an Outperform ranking.Nonetheless, he broke together with his contemporaries in reducing his value goal to $145 from $155.

Regardless of the optimistic outlook from Wall Road analysts, shares of Amazon slumped 8.95% shortly earlier than Friday’s market shut.

Learn extra on a reported FTC probe into the corporate being ready.