Goldman Still Buying Amazon Following AWS Summit

Amazon.com, Inc. (NASDAQ: AMZN) hosted its AWS Summit in Chicago on April 18 and 19. Goldman Sachs’ Heath P. Terry maintained a Buy rating for Amazon, with a price target of $720, while the company continues to be on the Conviction List.

Key Highlights Of AWS Summit

Analyst Heath Terry mentioned highlights from the keynote presented by Dr. Matt Wood, General Manager of Product Strategy at AWS:

• AWS Operating Metrics: AWS is growing 70 percent y/y in 2016, with more than 1 million monthly active customers. “The business is focused on driving customers across start-ups, large enterprises, and the public sector,” Terry wrote.
• Product Announcements: Amazon announced two new HDD-backed storage options for Elastic Beanstalk for improved throughput. The company also announced an 80 TB Snowball device, which is expected to be available across all regions by yearend, as well as the Amazon S3 Transfer Acceleration service for 300 percent faster uploads.
• Focus Area: The focus continues to be on large enterprise adoption. “Dr. Wood commented that there are a large number of enterprise customers with “material and meaningful” product workloads on AWS,” Terry mentioned.