Amazon's (AMZN) Pillars Were On Display This Week - RBC Capital

RBC Capital analyst Mark Mahaney weighed on Amazon.com (NASDAQ: AMZN) noting how the company's three pillars were on display this week: On Tuesday, Amazon held its 2nd Prime Day, which the company noted was its biggest day ever and driven by ~3x order growth from 3P sellers. On Wednesday, the firm attended the AWS Summit in Santa Clara and continue to believe the momentum in AWS (& Cloud) might be the most compelling theme across all technology.

Mahaney estimates Prime Day drove total GMV to around $1 billion and revenue to around $500M (vs. ~$400MM in 2015), given 3P sales were a larger part of the sales mix. While metrics were impressive, Mahaney said the key metric to understanding Prime Day's success is the number of Prime members added to the platform, which the company did not disclose.

Meanwhile, at the AWS Summit while there were no significant price cuts or product introductions the tone was upbeat and commentary from Partners and customers remained very positive. Dr. Matt Wood outlined what AWS refers to as the “data flywheel” – 1) As an application grows, it collects more users; 2) More users begets more data; 3) With more data, the organization can derive better insights (better questions, better answers); & 4) With greater insights, the organization builds better products and features, which in turn drives more users and the cycle repeats.

The firm reiterated an Outperform price target of $800 on AMZN.

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 $742.63 yesterday.

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