Canaccord Genuity Maintains a 'Buy' on Amazon.com (AMZN); Expect Solid Revenues / Light Margins

Canaccord Genuity maintains a 'Buy' on Amazon.com (NASDAQ: AMZN), PT $220.

Canaccord analyst says, "We’re expecting Amazon’s Q1 after the close on Tuesday to continue the trend of solid revenue growth, offset by lighter margins, as the company continues to invest in infrastructure, technology, and marketing. We believe that as with past investment cycles at Amazon, higher levels of sustainable growth and margin expansion are likely to follow, starting by Q4 this year at the latest."

"We are looking for Q1/11 revenue modestly above consensus of $9.5B (+34% YOY), despite intra-quarter headwinds, and GAAP earnings of $0.61/sh, as sales growth benefits from product availability and delivery time improvements on the back of the distribution build-out. We expect Q2 guidance will likely bracket consensus of $8.7B (+33% YOY) in revenue and ~$500M in PFOI."

For more ratings news on Amazon.com click here and for the rating history of Amazon.com click here.

Shares of Amazon.com closed at $185.42 yesterday.

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