Needham & Company Maintains a 'Hold' on Amazon.com (AMZN); Infrastructure Investments and Potential Sales Tax Impact Could Dampen Cash Flow

Needham & Company maintains a 'Hold' on Amazon.com (NASDAQ: AMZN).

Needham analyst says, "We believe demand fundamentals are strong and sustainable given the opportunities for global expansion and continued shift of consumer spending online. We expect Amazon’s competitive advantage of offering the widest selection of items and the lowest prices to propel market share. Offsetting this robust revenue growth is the significant infrastructure investments required to support its rapidly growing operations, which has and is likely to continue to pressure cash flow growth. We also believe the inevitable sales tax on Internet purchases could slow revenue and cash flow growth."

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 $214.18 yesterday.

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