(Alliance News) - Amazon.com Inc had its price target cut by analysts at UBS Group in a research note issued on Wednesday.

UBS said it has reduced its price target for Amazon to USD125 from USD165, but it maintained its "buy" recommendation.

Analysts at UBS highlighted: "deteriorating cloud checks around (1) customer efforts to optimize/trim cloud spend, (2) delays in new workload migration to avoid upfront costs, and (3) beyond the cyclical/macro, a shift into a more mature "phase two" of market development, marked by slower growth of more difficult-to-migrate workloads."

It therefore expects "meaningfully below consensus top line growth."

However, UBS noted that retail trends finished the year on a strong note according to US census data.

According to data, advance monthly non-store retail sales grew 7.7% year-on-year in November. Versus 2019 levels, November non-store sales growth re accelerated to 74%, after declining to 67% in October.

Further, according to Mastercard SpendingPulse, US e-commerce also remained robust as online sales grew 10.6% year-on-year from November 1 to December 24, 2022, and US e-commerce made up 21.6% of total retail sales, up from 20.9% in 2021 and 20.6% in 2020.

Shares in Amazon were down 1.7% to USD84.36 in New York on Wednesday morning.

By Sophie Rose; Alliance News reporter

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