By: Scott Fields
Amazon.com, Inc. (NASDAQ:
In reaction, Cantor analyst
Squali commented, “Accelerating revenue growth and expanding margins show the effect of Amazon’s powerful flywheel of Prime and FBA driving higher velocity of orders, supported by an optimized delivery platform at scale. While ST profitability has been a thorny topic, growth and margin trends in the last six quarters show that Amazon is reaping the benefits of heavy investments, while showing material scale leverage. That said, we see further investments in FCs, video content and India in 2H16, which are likely to keep margins in check ST.”
“We’re revising our FY:16 estimates to $136.0B in revenue, $5.45 in EPS and $15.15B in EBITDA vs. $133.14B, $5.43 and $15.05B, previously,” the analyst added.
Out of the 45 analysts polled by TipRanks, 40 rate Amazon stock a Buy, while 5 rate the stock a Hold. With a return potential of 8.2%, the stock’s consensus target price stands at $814.49.