Amazon (AMZN) PT Raised to $500 at RBC Capital
RBC Capital analyst Mark Mahaney reiterated an Outperform rating and raised his price target on Amazon.com (NASDAQ: AMZN) to $500.00 (from $400.00) following results after the close.
Quarter Keys: 1) Revenue Growth Acceleration…Across The Board – The Media, Electronics & General Merchandise, and AWS segments each accelerated, thanks to Prime, great execution, market share gains, and to some extent, easier comps; 2) Record High Gross Margin…; 3) Highest Q1 Operating Margin in Four Years…; 4) Solid Metrics – 20% Unit Growth, 14% Active Customer growth to 278MM; 5) Very Good FCF -- $3.2B on a TTM basis, up 110% Y/Y; & 6) New & Improved Disclosure, Especially Re: AWS – we all learned that AWS is a 50/50 business – 50% Y/Y Revenue Growth with 50% EBITDA Margins, which is dramatically better than we and the market had assumed….has material valuation implications.
The firm's ’15 Revenue estimate increases by 2% to $103B, while our Operating Income estimate increases by 5% to $2.9B.
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Shares of Amazon.com closed at $389.99 yesterday.