Jeff Bezos, founder and CEO of Amazon, speaks with employees after he made a surprise appearance during a Amazon Veterans Day celebration, honoring the Warriors@Amazon, a group of employees who have served in the military and their spouses, in an event outside a hanger at the Long Beach Airport in Long Beach on Monday, November 12, 2018. 

Amazon’s fourth-quarter slump was part of a market route that reflected concerns of rising interest rates, a slowing economy and political uncertainty. The S&P 500 had its worst year since the 2008 recession.

In a note published this week, Evercore’s Anthony DiClemente dropped Amazon’s target price to $1,800 — one of the lowest among all analysts — citing broader market volatility and the “current market compression.”

DiClemente wrote that the current price represents a “bargain” for investors, as the company’s leading position in online retail and cloud computing puts it in a good position to deliver strong results.

“Anywhere in the $1,500 range provides investors with a rare opportunity to own the clear leader in cloud and e-commerce,” DiClemente wrote.

Although AWS revenue fell slightly below estimates in its latest quarter, the cloud unit still generated a record $6.68 billion in revenue, accounting for the bulk of Amazon’s operating profits.

Brent Thill from Jefferies said AWS’ massive recurring revenue stream and profitability enable Amazon to invest more aggressively in its core retail business, while expanding profit margins.

“It’s one of the biggest competitive moats in technology,” said Thill, who has a “buy” rating and $2,300 price target.

(Excerpt) Read more Here | 2019-01-05 16:38:31
Image credit: source

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