Prudential Comments on Amazon.com (AMZN) Ahead of Results
Tweet
Share
E-mailGet Alerts AMZN Hot Sheet
Price: $247.31 --0%
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 7
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 7
Join SI Premium – FREE
CONTRIBUTOR http://notablecalls.blogspot.com
Prudential comments on Amazon.com (NASDAQ: AMZN) ahead of 4Q earnings (Feb. 1st). Although the company didn't disclose holiday sales results, the firm believes that certain data points from other retailers suggest that AMZN's holiday season could have been less than spectacular.
First, book retailers BKS and BGP reported tepid holiday comp-store sales of -0.1% of -1.9%, respectively, despite significant promotional activity.
Second, music retailers continue to struggle: BGP noted a steep decline in the category, BBY reported a decline, and CC's music comps were down double digit.
Third, electronics was the hottest product category over the holidays, but was driven by flat-panel TVs, where AMZN does not appear to be a significant player. In addition, the CE business was reported to be highly promotional, which could pressure AMZN's profit margins.
Finally, U.S. traffic on Amazon was up only 5.7% in 4Q (according to comScore), and trended down in each month of the quarter.
On a positive note, DVD comps were positive for most retailers, and video gaming sales were a standout. In addition, AMZN will record full toy revenue for the first time in five years, and could get as much as a $150 million revenue boost from currency exchange.
Reiterates Underweight rating and $25 price target on AMZN.
Notablecalls: I would not be surprised to see weakness in AMZN ahead of the results. Pru's call does not have any new datapoints in it but it does highlight the obvious.
For more calls go to http://notablecalls.blogspot.com
Prudential comments on Amazon.com (NASDAQ: AMZN) ahead of 4Q earnings (Feb. 1st). Although the company didn't disclose holiday sales results, the firm believes that certain data points from other retailers suggest that AMZN's holiday season could have been less than spectacular.
First, book retailers BKS and BGP reported tepid holiday comp-store sales of -0.1% of -1.9%, respectively, despite significant promotional activity.
Second, music retailers continue to struggle: BGP noted a steep decline in the category, BBY reported a decline, and CC's music comps were down double digit.
Third, electronics was the hottest product category over the holidays, but was driven by flat-panel TVs, where AMZN does not appear to be a significant player. In addition, the CE business was reported to be highly promotional, which could pressure AMZN's profit margins.
Finally, U.S. traffic on Amazon was up only 5.7% in 4Q (according to comScore), and trended down in each month of the quarter.
On a positive note, DVD comps were positive for most retailers, and video gaming sales were a standout. In addition, AMZN will record full toy revenue for the first time in five years, and could get as much as a $150 million revenue boost from currency exchange.
Reiterates Underweight rating and $25 price target on AMZN.
Notablecalls: I would not be surprised to see weakness in AMZN ahead of the results. Pru's call does not have any new datapoints in it but it does highlight the obvious.
For more calls go to http://notablecalls.blogspot.com
You May Also Be Interested In
- Needham says State AGs delay on Paramount Skydance (PSKY) deal 'will NOT derail the deal'
- The Chefs' Warehouse, Inc (CHEF) PT Raised to $106 at Benchmark on Growth Assumption
- HSBC Downgrades IBM (IBM) to Reduce, 'Stretched Valuation'
Create E-mail Alert Related Categories
Analyst Comments, ContributorsSign 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!
