Needham & Company raised its price target for Amazon (NASDAQ:AMZN) to $150 from $120, maintaining a Buy rating after the tech giant's loud subsidiary, AWS, hosted an all-day AppFabric product launch.
Analysts explained that AppFabric is a new no-code AWS service that facilitates the integration of SaaS apps.
"Our key economic takeaway is that AppFabric should lower AWS customer churn, by increasing exit cost," wrote the analysts. "AWS stated that an avg FTE uses 16 apps/day and switches between them dozens of times/day. The launch of new apps is accelerating owing to Cloud services, like AWS, which lower the costs to launch a new app.
"Generative AI was the most interesting part of the 5-hour presentation, in our view, even though it's not here yet. AppFabric stated it will launch an AI assistant by 12/31/23, driven by LLMs (large language models) developed by AWS as part of its Bedrock platform," they added.
They also noted that the second most interesting part of the presentation was a research presentation about the future of work.
"During this presentation, we were most intrigued by the ideas of: a) tech exhaustion; b) data overload; and c) humans and bots on the same team, working to solve problems together. AWS believes AppFabric will accelerate the ability of its clients to use generative AI as a full team member to accomplish business goals faster," said the analysts.