Barclays said in a brief note Tuesday that tech giant Amazon (NASDAQ:AMZN) is the firm's preferred mega-cap name in 2024.
Analysts at Barclays, who have an Overweight rating and a $190 price target on the stock, said new disclosures support their bullish view of the stock this year.
"The investment community remains focused on current quarter AWS growth rates (pointing to 12-13% for 4Q), " the analysts wrote.
"We take a bigger picture look, pointing out that: 1) AWS has one of the highest productivity rates in the software space, measured by revenue and operating income per employee, and 2) there is a huge dispersion in AWS spend among Fortune 1000 customers and cloud-native spenders, and GenAI should help close this gap in coming years," they added.
The analysts also feel that as revenue growth at AWS re-accelerates in 2024, investors are likely to be rewarded by AMZN shares outperforming the rest of mega-cap tech.