Needham & Company July e-Commerce Data Points Suggest Q3 Off To Strong Start (EBAY, AMZN)
Tweet
Share
E-mailGet Alerts EBAY Hot Sheet
Price: $104.13 -0.46%
Rating Summary:
24 Buy, 28 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
24 Buy, 28 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Join SI Premium – FREE
Needham & Company July e-Commerce Data Points Suggest Q3 Off To Strong Start
Analyst, Kerry Rice, took note of July's release by Channel Advisor, an e-commerce platform provider of data points. Rice points out eBay (Nasdaq: EBAY) same-store sales (SSS) increased 28.2% in July, which is the fastest growth reported by Channel Advisor (for eBay) since it began tracking. Also of note, Amazon (Nasdaq: AMZN) same-store sales increased 44% year-over-year (in-line with Needham expectations).
Rice said, "The strong eBay growth was likely driven by fixed price sales growth, which increased 33.1% in July, which was also a record for Channel Advisor. For comparison, fixed priced sales growth accelerated sequentially from 27.5% and 22.3% in July 2011...Channel Advisor’s eBay Motors segment, one of eBay’s largest segments, reported a strong increase of 36.0% YoY." (Needham reiterates a 'Buy' on EBAY and $50 price target)
For AMZN, Rice said, "Given that Amazon represents a smaller percentage of Channel Advisor’s overall revenue mix, the SSS may not reflect Amazon’s overall revenue growth trends as accurately as for eBay...We maintain our HOLD rating. Our discounted cash flow model indicates that Amazon’s shares are fully valued.
Analyst, Kerry Rice, took note of July's release by Channel Advisor, an e-commerce platform provider of data points. Rice points out eBay (Nasdaq: EBAY) same-store sales (SSS) increased 28.2% in July, which is the fastest growth reported by Channel Advisor (for eBay) since it began tracking. Also of note, Amazon (Nasdaq: AMZN) same-store sales increased 44% year-over-year (in-line with Needham expectations).
Rice said, "The strong eBay growth was likely driven by fixed price sales growth, which increased 33.1% in July, which was also a record for Channel Advisor. For comparison, fixed priced sales growth accelerated sequentially from 27.5% and 22.3% in July 2011...Channel Advisor’s eBay Motors segment, one of eBay’s largest segments, reported a strong increase of 36.0% YoY." (Needham reiterates a 'Buy' on EBAY and $50 price target)
For AMZN, Rice said, "Given that Amazon represents a smaller percentage of Channel Advisor’s overall revenue mix, the SSS may not reflect Amazon’s overall revenue growth trends as accurately as for eBay...We maintain our HOLD rating. Our discounted cash flow model indicates that Amazon’s shares are fully valued.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Needham Starts Faeth Therapeutics (FTH) at Buy
- HSBC Downgrades Kakao Corp. (035720:KS) to Hold
- NIQ Global Intelligence Plc (NIQ) PT Raised to $21 at Needham
Create E-mail Alert Related Categories
Analyst Comments, Retail SalesRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
