Latest news with #Nowak
Business Insider
6 days ago
- Business
- Business Insider
AMZN vs. TSLA vs. META: Which Magnificent 7 Stock Is Wall Street's Best Buy Right Now?
The year-to-date movement in the Magnificent 7 stocks has been mixed so far amid tariff woes, macro uncertainty, and artificial intelligence (AI) boom. These Magnificent 7 stocks: Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA), are prominent tech companies that are known for their market dominance, innovation, and influence on the Nasdaq Composite and S&P 500 (SPX) indices. Using TipRanks' Stock Comparison Tool, we placed Amazon, Tesla, and Meta Platforms against each other to find the best Magnificent 7 stock among these three, according to Wall Street analysts. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. It is worth noting that chip giant Nvidia, which is the best-performing Magnificent 7 stock on a year-to-date basis (up nearly 23%), recently became the first company to hit the $4 trillion mark in market capitalization. Amazon (NASDAQ:AMZN) Stock E-commerce and cloud computing giant Amazon is proving the resilience of its business model despite macro challenges and tariff woes. Several analysts are bullish about the company's higher-margin Amazon Web Services (AWS) cloud computing unit and expect it to gain from AI-related tailwinds. In Q1 2025, the AWS division contributed 19% of its revenue but a remarkable 63% of the overall operating profits. Moreover, Amazon's rapidly growing advertising business is seen as a major growth driver. Looking ahead, Wall Street expects Amazon to report a 4% year-over-year growth in its second-quarter earnings per share (EPS) of $1.31 and a 9.4% rise in revenue to about $162 billion. Is AMZN a Buy, Sell, or Hold? Recently, Morgan Stanley analyst Brian Nowak increased the price target for Amazon stock to $300 from $250 and reiterated a Buy rating. After recently cutting estimates, Nowak increased his 2026 and 2027 estimates by 9% and 6%, to $8 and $9, respectively, to reflect lower and manageable tariffs and a more constructive macro backdrop. The 5-star analyst stated that the CIO survey bolstered his expectation of acceleration in AWS revenue. With 45 Buys and one Hold, Amazon stock scores a Strong Buy consensus rating on TipRanks. The average AMZN stock price target of $248.98 indicates 11% upside potential. AMZN stock has risen 2.6% year-to-date. Tesla (NASDAQ:TSLA) Stock Tesla stock is down 22.4% year-to-date and is currently the worst-performing Magnificent 7 stock. Weak sales amid intense competition in the electric vehicle (EV) space, macro challenges, margin pressures, and CEO Elon Musk's political ambitions have dragged down TSLA stock. Notably, Musk's formation of a new political party following a fallout with U.S. President Donald Trump has shaken investors' confidence, raising concerns about the future of the EV company. The news of Musk forming the America Party reversed the improvement in investor sentiment in reaction to his stepping down from the leading role at DOGE and the recent launch of robotaxis in Austin, Texas. Moreover, the end of the federal tax credit of $7,500 for the purchase of new EVs is also expected to hit Tesla's sales in the times ahead. Is Tesla Stock a Buy? Recently, Goldman Sachs analyst Mark Delaney lowered his price target for Tesla stock to $285 from $315 and reaffirmed a Hold rating as part of a broader research note on U.S. Autos and Industrial Tech industry. The 5-star analyst increased his U.S. auto forecast to reflect more 'measured' tariff levels than what had been initially proposed. That said, he continues to expect moderation in U.S. auto sales in the second half of 2025 after pre-buying ahead of tariffs and a potential rise in prices due to tariffs. Specifically, Goldman Sachs estimates U.S. auto sales at 15.75 million and 15.50 million units in 2025 and 2026, respectively, compared to its prior forecast of 15.40 million and 15.25 million. Overall, Wall Street has a Hold consensus rating on Tesla stock based on 14 Buys, 13 Holds, and nine Sell recommendations. The average TSLA stock price target of $295.80 indicates about 6% of possible downside from current levels. Meta Platforms (NASDAQ:META) Stock Meta Platforms' first-quarter results proved the social media giant's ability to navigate a challenging environment and deliver strong performance. The company is aggressively investing in data center infrastructure to support its AI ambitions. Meta recently announced $14.3 billion investment in Scale AI to secure high-quality training data for AI models, reinforcing its focus on this lucrative growth opportunity. Meta Platforms is scheduled to announce its second-quarter results after the market closes on July 30. Wall Street expects META to report EPS of $5.84 for Q2 2025, reflecting a 13% year-over-year growth. Analysts expect revenue to rise 14.2% year-over-year to $44.6 billion. Is META a Good Stock to Buy? Recently, Piper Sandler analyst Thomas Champion reiterated a Buy rating on Meta Platforms stock with a price target of $808. The 4-star analyst called META stock Piper Sandler's top large-cap internet pick, noting improving digital ad trends and investor sentiment heading into second-quarter results. Champion raised his estimates for META and highlighted strong trends indicated by checks and the company's significant AI investments. The analyst expects beat-and-raise second-quarter results, given that digital ad spend grew 6.6% year-over-year, marking a notable acceleration from Q1 2025. Further, Champion highlighted positives like Meta's new WhatsApp ad units, Reels product, and strength in new verticals such as travel and consumer packaged goods (CPG). CEO Mark Zuckerberg's hiring strategy and the company's AI roadmap also support Champion's bullish stance. Including Champion, 42 analysts have a Buy rating on Meta Platforms stock while four have a Hold recommendation, bringing the consensus rating to a Strong Buy. The average META stock price target of $736.67 indicates a modest 2.7% upside potential. META stock has rallied 22.5% year-to-date. Conclusion Wall Street is sidelined on Tesla stock, but is bullish on Meta Platforms and Amazon stocks. They currently see higher upside in Amazon stock than in the other two Magnificent 7 stocks discussed here. Wall Street's bullish stance on Amazon stock is backed by its dominance in e-commerce and cloud computing, AI-related tailwinds, and growing advertising business.
Business Insider
12-07-2025
- Business
- Business Insider
Can Amazon Gain 35%? Top Analyst Cites Improving Macro Backdrop and AWS Strength
Morgan Stanley's top analyst, Brian Nowak, has increased the price target for Amazon stock (AMZN) by 20%, raising it to $300 from $250, while maintaining his Buy rating. The revised price target implies nearly 35% upside potential from current levels. The analyst cited an improving macroeconomic backdrop and a manageable tariff situation as the main drivers of his bullish outlook. In mid-April, Nowak had slashed the price target on AMZN stock due to uncertainty surrounding the U.S.-China trade deal. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Nowak ranks #788 out of the 9,867 analysts tracked on TipRanks. He boasts a 61% success rate and an average return per rating of 7.10%. Interestingly, Nowak has achieved even better results with his AMZN recommendations to date, recording a 79% success rate and an average return per rating of 24.33%. Why Is Morgan Stanley Bullish on AMZN? Nowak believes that the tariff environment has become 'more manageable' as trade deals between the U.S., China, and several other countries have been reached. Additionally, the analyst is highly optimistic about the growth potential of Amazon Web Services (AWS), backed by its rapid adoption. It is worth noting that Amazon is strengthening its partnership with the artificial intelligence (AI) startup Anthropic, which could further bolster its performance. Notably, Anthropic uses AWS as its primary cloud provider, and AWS customers gain access to Anthropic's advanced AI models. Anthropic is one of the biggest challengers to ChatGPT maker OpenAI, with its Claude models attracting increased adoption due to their powerful multimodal capabilities. At the same time, AWS faces strong competition from Microsoft's (MSFT) cloud computing platform, Azure, which is also accelerating its generative AI offerings. Nonetheless, Nowak noted that AWS is better positioned to compete as growing AI demand drives more business to cloud providers. Finally, Nowak mentioned that a survey of Chief Information Officers (CIOs) revealed a much bigger demand for AWS' services compared to its rival, which is expected to drive faster growth. Nowak believes that AWS is tactically expected to gain further share over Microsoft, Alphabet (GOOGL), and Oracle (ORCL). All these factors have led Morgan Stanley to rate Amazon as its 'Top Pick' in the sector. Interestingly, Nowak's 'bull case scenario' sets a price target of $350 for AMZN stock, which implies an impressive 57% upside potential from current levels. The top analyst also increased Amazon's earnings per share (EPS) estimates for fiscal years 2026 and 2027 by 9% and 6%, respectively, in line with his optimistic view. Is AMZN a Strong Buy? average Amazon price target of $247.43 implies 11.3% upside potential from current levels. Year-to-date, AMZN stock has gained 1.3%.
Miami Herald
05-07-2025
- Automotive
- Miami Herald
Amazon sends a bold message Tesla fans need to hear
For over a decade, autonomous vehicle company Zoox has been building an autonomous vehicle designed to stand out from others on the road. There's a reason the rectangular glass-paneled Zoox robotaxi looks so weird. Besides the vehicles' lack of steering wheels, perhaps the most interesting Zoox feature is its two-engine design. Zoox calls its vehicles bi-directional, meaning there is no forward or reverse because both directions are forward. The two motors at different ends of the car allow it to drive forward in two directions. Related: Latest Waymo setback raises serious questions about its future Nvidia (NVDA) has been one of the company's partners since its inception. Unlike Tesla (TSLA) , which has said it doesn't use the technology because it's too expensive, Zoox utilizes light detection and ranging (LiDAR) to navigate traffic autonomously. LiDAR uses lasers to measure distances and create highly detailed 3D models of its surroundings. Zoox uses this tech, along with cameras, radar, long-wave infrared sensors, and microphones, to map the traffic around it. All of that tech needs a lot of computing power, and Nvidia has provided that power since 2014. But now the startup is ready to take its vehicles to the streets in a big way, according to a new note from Morgan Stanley. Image source: Smith Collection/Gado/Getty Images Last week, Zoox cut the ribbon on a new serial production facility for purpose-built U.S. robotaxis in Hayward, California, near Silicon Valley. The company will use the facility for engineering, software/hardware, integration, assembly and everything else. According to Morgan Stanley analyst Bran Nowak, who has seen the facility's size and grandeur, suggests that Amazon, which bought Zoox for $1.2 billion in June 2020, is fully committed to ensuring the company builds something viable soon. "Zoox's Hayward, the CA facility, is 220,000 square feet (~3.5 American football fields) and, at full scale, has the capacity to assemble more than 10,000 robotaxis per year," says Nowak. "Notably, this is similar to Waymo's Mesa, AZ plant at 239,000 square feet in size and capable of producing tens of thousands of vehicles per year." Related: Forget Tesla, Ford is eyeing even bigger EV rivals Of course, Tesla does not have any issues with production capacity for its robotaxis since Tesla's ultimate goal for the program is to have every Tesla on the road have the capacity to be a robotaxis. Tesla built nearly 1.8 million vehicles last year. Tesla robotaxi launched in Austin, Texas, in June to much fanfare. Tesla also has ambitions to expand to different locales, but its debut has gotten off to a rocky start. Multiple videos have appeared on social media showing the vehicles failing to achieve the basic road competence of a student driver. User @BradMunchen didn't share where his video came from, but the 42-second clip shows a Tesla robotaxi with its left blinker on following a safe distance behind the vehicle in front of it. But the robotaxi becomes "confused" after the vehicle in front makes a left turn. The autonomous vehicle drives in the wrong lane for five seconds before correcting its course and safely merging into another lane. But there is also a lot of hype around the program. Tesla hopes to figure out Austin soon so it can move on to the next city. Related: Tesla robotaxi safety called into question after frightening video The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Daily Mirror
07-06-2025
- Business
- Daily Mirror
Voters overwhelmingly back tax on wealthy to protect public services
A poll commissioned by the Trades Union Congress (TUC), found the public support tax increases on the wealthy and big businesses by a margin of almost two to one - 58% to 28% Voters overwhelmingly back taxing the wealthy more in order to protect public services, a new poll found today. The research, commissioned by the Trades Union Congress (TUC), found the public support tax increases on the wealthy and big businesses by a margin of almost two to one - 58% to 28%. And the number rises among people who switched their vote from the Tories to Labour in last year's election - where a mammoth 71% said they supported the idea, compared to 23% who did not. And Labour voters who are now strongly considering voting Reform also backed it by 61% to 32%. The new polling comes ahead of the Spending Review, which the TUC says can be the "next key step" in the government's plan to rebuild Britain and deliver industrial renewal. The TUC said the findings highlight the public's appetite for rebuilding public services - and suggested a "fairer" tax system should be part of plan. General Secretary Paul Nowak said: 'The Spending Review can be the next key step in the government's plan to rebuild Britain and deliver industrial renewal. 'Communities are still crying out for meaningful change after more than a decade of Tory austerity and neglect. 'That's why the government must stay on track – building on the positive start it made at last year's Budget by providing sustained funding for our public services and infrastructure. 'The global outlook is challenging, but leaving our decimated public services without sufficient investment would risk both future growth and public trust." The poll also found nearly 6 in 10 voters - 59% - believe the wealthiest don't pay their fare share. And a clear majority - 56% - said big businesses don't pay their fare share. More than two thirds (67%) said there were too many tax loopholes that could be exploited by the wealthy. Asked how more could be raised from the richest, two thirds backed an annual wealth tax on estates over £10 million. Some 63% backed a windfall tax on banks, and half said they supported increasing capital gains tax - the tax people pay on the profits from selling assets like property. 'The message from voters is clear," Mr Nowak said. "They want the government to protect and rebuild our public services. 'If that means asking the wealthiest to pay more, the public are behind it. People are fed up with a system where those with the broadest shoulders don't pull their weight.' Pollsters Hold Sway surveyed 2000 adults in Great Britain online between 30 May and 2 June.
Business Insider
06-06-2025
- Business
- Business Insider
Morgan Stanley Sticks to Their Buy Rating for Amazon (AMZN)
Morgan Stanley analyst Brian Nowak reiterated a Buy rating on Amazon (AMZN – Research Report) today and set a price target of $250.00. The company's shares closed today at $207.91. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Nowak is a 5-star analyst with an average return of 6.0% and a 60.24% success rate. Nowak covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. Amazon has an analyst consensus of Strong Buy, with a price target consensus of $241.64, which is a 16.22% upside from current levels. In a report released today, Barclays also maintained a Buy rating on the stock with a $240.00 price target.
