Needham & Company maintains a 'Hold' on Amazon.com (AMZN); 3Q11 Results and Guidance Disappoint as Investments Encumber Profitability

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

Needham analyst says, "Lowering our revenue and EPS estimates to reflect disappointing 3Q11 results and Q4 guidance. While our 4Q11 revenue estimates could prove conservative given the ramping Kindle Fire demand, a weak economy could dampen holiday spending and offset the revenue benefit. Rising infrastructure costs, as well new content licenses, product launches, and shipping continue to pressure profitability. We expect investment levels to remain elevated in 2012, but revenue growth should modestly out pace spending growth...We are
revising our FY12 GAAP EPS to $2.13 on revenue of $64.2 billion, down from GAAP EPS of $4.08 on revenue of $66.7 billion."

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 $227.15 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• Wolverine World Wide (WWW) PT Raised to $24 at Needham
• Amazon.com (AMZN) Reiterated at Market Outperform Rating by Citizens on AWS Leadership