On Thursday, Amazon said it will lay off 16,000 employees and close its remaining Fresh grocery stores and Go markets. Human Resources Chief Beth Galetti added the steps aim to “reduce layers, increase ownership, and remove bureaucracy,” and to help offset AI-related spending (Ed. note: the company cited AI infrastructure costs as a reason for the cuts).
The announcements pushed Amazon shares lower, trading near $243 on Thursday. According to a report, Bank of America cut its price target to $286 from $303, a $17 reduction.
The bank listed several downside risks tied to the company’s outlook. It pointed to strong competition from offline and local retailers and clients trimming costs at AWS as pressures on revenue and margins.
Additional concerns included regulatory pressure on the third-party marketplace and economic uncertainty related to tariffs. Bank of America still projects upside, estimating shares could rise about $43 to $286, roughly an 18% gain. Under that scenario, a $1,000 holding would become about $1,180.
