Amazon’s stock price plummeted after its quarterly earnings report, as investors had higher expectations for the growth of its cloud computing business. However, some analysts raised their target prices for the company.

As of the latest update, Amazon fell over 8% on Friday. In addition to the stock’s own negative factors, the broader U.S. market’s poor performance exacerbated its decline. All three major U.S. stock indices dropped over 1%, with the tech-heavy Nasdaq falling more than 2%.

Data released on Friday showed that U.S. non-farm payrolls added 73,000 jobs in July, below the market expectation of 100,000. Data from previous months was also significantly revised downward: June’s job growth was only 14,000, far lower than the previously reported 147,000, while May’s figures were sharply revised down from 125,000 to 19,000.

As the U.S. labor market weakens, investors are concerned about an economic slowdown, triggering a sell-off.

Returning to Amazon itself, the company released its latest earnings report after the market closed on Thursday. Although overall revenue exceeded market expectations, its stock price still fell sharply.

JPMorgan believes the "culprit" behind Amazon’s stock decline is likely Amazon Web Services (AWS). While the division’s revenue growth met analyst expectations, it did not accelerate compared to the previous quarter. Meanwhile, competitors Microsoft and Google both delivered strong performances in their cloud businesses.

Despite this, JPMorgan analysts said they "would buy Amazon on weakness" and raised the stock’s target price from $255 to $265, implying around 25% upside potential.

During the earnings call, Amazon CFO Brian Olsavsky stated that Amazon’s capital expenditures reached $31.4 billion in the second quarter and are expected to remain at this investment level through 2025.

"AWS remains the primary driver, as we’re investing to meet the growing demand for AI services," Olsavsky said.

UBS analysts maintained their $271 target price for Amazon and said investors need not overly worry about the rise in capital expenditures.

"In our view, selling Amazon shares implies you believe management and the board are making economically irrational decisions by continuously increasing capital investments," UBS said. "But we find this scenario hard to justify, especially given that Amazon has been one of the best capital allocators in our coverage."

Citigroup raised its target price to $270, citing increased investments as "highlighting sustained strong demand, with AWS alleviating its infrastructure capacity constraints."