Amazon (AMZN): Strong Beat And Raise - RBC

RBC Capital analyst, Mark Mahaney, reiterated his Outperform rating on shares of Amazon.com (NASDAQ: AMZN) and raised the price target to $1,200 from $1,100 after the company posted Q3 Revenue of $43.7B, up 29% ex-FX and ex-WFM, accelerating from 26% in Q2 and above
the Street consensus of $41.6.

The analyst highlighted 4 keys to the quarter:

1) Accelerating Retail Revenue Results, Again – North American revenue came in materially ahead of expectations at $25.4B (vs. Street’s $24.0B), with $1.3B from WFM. International Revenue of
$13.7B also handily beat the Street’s $12.6B. This is what accelerated – North America, International, Retail Products, Retail 3P Services, Retail Subscriptions Services and Other… Basically everything.

2) AWS – AWS growth decelerated a whopping 0.2% Q/Q... to 42%, flat with Q2 growth
and resulting in $4.6B in Revenue, 10.5% of the company’s total

3) FCF – TTM FCF came in at $8B

4) Unit Growth – Up 25% Y/Y, vs. 27% in Q2; 3P Unit Sales @ 50% of total

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 $972.43 yesterday.

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