This quarter is 'not the time to get aggressive on Amazon' stock, analyst says

Analyst: Two issues in Amazon's earnings report

Amazon is not the stock "to get aggressive on," at least not right now, RBC Capital Markets analyst Mark Mahaney told CNBC on Monday.

Despite being a longtime bull on the stock, with a price target of $900, Mahaney says Amazon is a big question mark.

"I remain a long-term bull on Amazon," he said. But, "now is not the time to get aggressive."

On "Power Lunch," Mahaney said there are two issues with the stock.

First, he thinks that Wall Street is underestimating the amount Amazon is investing in new initiatives, and may be surprised by a lower outlook for the second quarter. "This company is known for investment cycles, and the Street's got only modest margin declines in the June quarter so I think there could be an area of disappointment in that outlook," said Mahaney.

Second, he noted that last quarter "there was a little bit of a shortfall, both AWS -- that cloud revenue came in a little light -- and so did the margins," he said.

Mahaney says now we'll be seeing a full quarter of the impact of price decreases in the cloud businesses at Amazon, as well as at and , which he thinks "could be another potential area for disappointment."