Amazon.com (AMZN) PT Cut 11% at Susquehanna; Long-Term Story Not Broken

Susquehanna analyst Brian Nowak reiterated a Positive rating on Amazon.com (Nasdaq: AMZN), but cut his price target to $400.00 (from $450.00) amid Q2 results which delivered more revenue, gross profit, units, prime members...and spend.

Nowak notes while nothing is broken with the core long-term Amazon story, they company will need to be given an "investment pass" due to increased spending.

Nowak comments, "In the past, continued solid gross profit growth and beats have given Amazon an "investment pass" with investors through their aggressive spending cycles. They need that now more than ever...because further investment is coming as Amazon guided 3Q:14 CSOI to -$400mn-$0, vs. us previously at $256mn and the Street at $354mn. The incremental pressure is driven by a broad set of investments including: digital content, more fulfillment and sortation centers, hardware/devices, and international expansion (China, India, Italy and Spain)."

The firm is lowering '14 CSOI by 19% (or $428mn).

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 $358.61 yesterday.

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