Analyst firm BNP Paribas gives ‘Outperform’ rating to Amazon stock; tells investors don’t go by concerns on …

BNP Paribas has maintained an “Outperform” rating on Amazon stock, saying concerns over the company’s rising spending on artificial intelligence (AI) are “overdone.” In a note released on April 8, BNP Paribas analyst Nick Jones said Amazon’s heavy investment in AI and cloud infrastructure is both “appropriate and necessary” given the growing demand and long-term opportunity. The comments were reported by MarketWatch. In the note, Jones advised investors not to focus only on how much Amazon is spending, but instead look at its backlog-to-capex ratio — a measure that compares contracted demand with infrastructure spending. According to him, Amazon’s strong backlog means the company can quickly turn new capacity into revenue.