Price target: $1,850 (cut from $2,100)
Rating: Outperform
"The quarter was broadly fine, but guidance and commentary about increasing investment in '19 will likely weigh on the stock. Mgmt. mentioned that '18 was a 'lighter investment year' and we expect that '19 will ramp higher, particularly related to AWS, technology, and devices (but also potentially in fulfillment capabilities)," analysts led by Benjamin Schachter told clients on Friday.
"This is not necessarily a negative for the long term, but we think it will impact sentiment around the stock. We actually view the increased headcount and investment in AWS as a meaningful positive, as it indicates expected strength."