Amazon.com (AMZN) Online Store Growth Decelerates But This Boosts Two Other Businesses - Stifel

Stifel analyst Scott Devitt reiterated a Buy rating and $4,400.00 price target on Amazon.com (NASDAQ: AMZN) after the company reported Online Stores sales growth decelerated -200bps q/q to +1% y/y FX-adj. due to difficult y/y compares and consumer shopping returning to a level of normalization.

The analyst stated "Mister Market doesn’t seem to realize that Amazon retail is trading 1P gross booked revenue for 3P net booked revenue + high-margin advertising ($30B run rate) while it exchanges inventory for logistics prowess. AWS remains the world’s largest, most dominant cloud business growing +40% y/y on a $71B revenue run rate at 30% margin. The company guided 1Q:22 operating income to a “better than feared” in-line with our estimates and slightly below consensus. The company announced that it will be increasing its annual Prime subscription price +17% to $139/yr, the first increase in four years. The company also began reporting its Advertising Services revenue stand-alone from Other revenue."

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $2776.91 yesterday.

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