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Collins Stewart Initiates Coverage on Amazon.com (AMZN) with a Buy; Negative on eBay (EBAY)

January 14, 2009 8:42 AM EST
AMZN Hot Sheet
Rating Summary:
    21 Buy, 11 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Collins Stewart initiates coverage on Amazon.com (Nasdaq: AMZN) with a Buy. Price target $65.

Collins analyst says, "AMZN leads the E-Commerce industry with a culture of innovation and a strong customer-centric approach. AMZN's top-line growth is 2.5x the US E- Commerce growth rate and we expect margin expansion in 2010 and beyond...AMZN trades at a premium to its peers, but it is well deserved due to strong fundamentals and secular growth trends, in our view."

"Long AMZN/Short EBAY (Nasdaq: EBAY)...We believe eBay is currently where Yahoo! (Nasdaq: YHOO) was three years ago (changes required in its core business (i.e. display & search), severe loss of market share, management changes, and no major innovations) and Amazon is where Apple (Nasdaq: AAPL) was three years ago(strong traction in core offerings, market share gains, high growth in non-core business, and series of innovations)."

Amazon.com, Inc. (Amazon.com) operates retail Websites, which enables its consumer customers to find and discover anything they might want to buy online.

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