BofA Analysts Cut Rating for Amazon Stock on Growth Prospects

Bank of America Merrill Lynch (BAC) equity analysts cut their rating for Amazon's (AMZN) stock to "neutral" from "buy", saying that growth for the online retailer is slipping.

Analysts expect growth to weaken starting the in the third quarter, Reuters reported. Growth could be down as much as 28% in the fourth quarter, after adjusting for foreign exchange rates.

"We view the street estimate of $380 million in GAAP operating profit as too high," the analysts wrote. "We see more economic indicators trending negatively and less potential for a top-line acceleration surprise."

Amazon shares were down 2% at $120.5 before the bell.