Raymond James analyst Aaron Kessler downgraded Amazon.com to Market Perform from Outperform and removed his previous $925 price target. The shares are fairly valued after rallying 21% this year and 44% over the last 12 months, Kessler tells investors in a research note.

The analyst expects Amazon's investment levels to remain elevated in the near-term and he views consensus operating income estimates for Q2 as aggressive. Amazon closed yesterday up $8.88 to $907.41.