### Amazon Shares Decline Following Rare Analyst Downgrade

Shares of Amazon (AMZN) fell by 3% after a rare downgrade from Wells Fargo analyst Ken Gawrelski. Gawrelski reduced his rating on the e-commerce giant's stock to a Hold equivalent and trimmed his price target from $225 to $183. CNBC host Jim Cramer described the downgrade as "shocking."

Gawrelski cited an absence of near-term growth drivers and anticipated pressure on Amazon stock heading into the next year. He also voiced concerns regarding increased competition from Walmart (WMT), which has been bolstering its online retail operations, posing a threat to Amazon's core e-commerce business.

He highlighted "multiple headwinds" affecting Amazon. These include substantial expenditures on its nascent satellite internet initiative, Project Kuiper, and a slowdown in revenue from its online advertising segment. Consequently, Wells Fargo projects sluggish margin expansion for Amazon in the near future.

This downgrade stands out as other analysts are currently updating their ratings and price targets favorably. On the same day that Wells Fargo's downgrade was issued, both JMP Securities and Morgan Stanley (MS) reaffirmed their Buy ratings on Amazon and increased their price targets.

Despite the recent dip, Amazon shares have risen by 19% this year and have surged 41% over the past 12 months. Presently, Amazon enjoys a consensus Strong Buy rating from 45 Wall Street analysts, with 43 Buy and two Hold recommendations in the last three months. The average price target of $223.02 suggests a 23% potential upside from current levels.