Astera Labs(ALAB.US) stock price drops over 16% after earnings report; investment banks focus on Amazon partnership and profit structure

LootboxPhobia · 2026-02-11T15:54:52+00:00

Astera Labs' earnings report and collaboration with Amazon have attracted Wall Street attention, with the stock falling over 16%. Analysts are optimistic about its performance but note that Amazon's warrants and expansion plans could impact future gross margins. Several investment banks maintain "Overweight" or "Buy" ratings, but target prices have been lowered.

LootboxPhobia

2026-02-11 15:54:52

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The Tong Finance APP learned that on Wednesday, Astera Labs (ALAB.US) became the focus of Wall Street attention, with multiple investment banks engaging in intense discussions regarding the company’s latest earnings report, performance guidance, and collaboration with Amazon (AMZN.US). Due to related uncertainties, Astera Labs’ stock price fell over 16%.

JPMorgan analyst Harlan Sur stated that the company’s recent quarterly performance was strong, with Scorpio “P” series, PCIe Gen6 re-timers, and Taurus network connectivity products continuing to grow, and guidance also exceeding expectations. However, he also pointed out that Amazon’s acquisition of warrants, unfavorable SKU structure, and increased hardware sales ratio could drag down future gross margins; additionally, accelerated M&A and R&D investments will push up short-term expenses. Sur maintained an “Overweight” rating but lowered the target price to $205.

Morgan Stanley analyst Joseph Moore believes that Astera’s revenue growth is strong but partially offset by aggressive expansion plans; the first half of the year is a transitional period, and subsequent growth related to Amazon’s Trainium 3 Scorpio X is worth looking forward to. He maintains an “Overweight” rating and a $210 target price.

Needham analyst N. Quinn Bolton pointed out that the Amazon warrant transaction could bring up to $6.5 billion in potential additional revenue. Despite high valuation, Astera focuses on cloud and AI infrastructure connectivity, with outstanding growth potential. He maintains a “Buy” rating and a $220 target price.

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