Amazon.com's (AMZN) Guidance Cut Does Not Impact Macquarie's LT View

Macquarie analyst Benjamin Schachter reiterated an Outperform rating and $2,200.00 price target on Amazon.com (NASDAQ: AMZN) after the company reported good 3Q results but disappointing 4Q guidance with the company disclosing that One-Day shipping is going to be more expensive than expected ($1.5B in 4Q).

The analyst noted that nothing from the 3Q results or the 4Q guide impacts his positive long term view of the stock stating "As we feared, one-day shipping is going to be more expensive than expected in the qtr (and incremental $1.5b) and AWS investments will also weigh on margins. While mgmt., we, and many investors continue to believe that investments to make one-day shipping possible are worth it in the LT, it is another investment cycle for AMZN. The main cost is around transportation, but also additional shifts, forward deploying inventory, and other. On the AWS side, ramping investment in S&M, geographic expansion, and ongoing infrastructure investments will continue into 4Q and beyond".

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 $1683.00 yesterday.

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