01:20 PM EDT, 10/25/2024 (MT Newswires) -- Amazon.com ( AMZN ) is the "most controversial large-cap internet stock" approaching Q3 Q3 results amid revenue and margin concerns at the cloud computing platform and competition from online stores, Oppenheimer said Thursday in a report.

Amazon Web Services, the cloud unit, is performing better than forecast this quarter, surpassing the anticipated 19% growth, while expected profit margin growth for 2025 is lower compared with the increases in 2023 and 2024, Oppenheimer said.

Amazon ( AMZN ) faces competition from Walmart ( WMT ) in third-party seller services and pressure on online-store performance, though the US economy is mostly stable, and consumer spending is robust, Oppenheimer said.

E-commerce is poised for improvement in Q4, and advertising growth for Prime Video is expected to reaccelerate, Oppenheimer said.

Concerns about Amazon's ( AMZN ) Kuiper satellite project are "overblown," and "we see a significant long-term revenue opportunity," Oppenheimer said.

Oppenheimer has an outperform rating on Amazon ( AMZN ) with a price target of $220.

Earnings from Q3 are expected Thursday.

Shares of Amazon ( AMZN ) rose 1.5% in recent Friday trading.

Price: 189.25, Change: +2.87, Percent Change: +1.54