Amazon.com (AMZN) Online Store Growth Is Slowing, But It Boosts Two Other Businesses

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February 4, 2022 6:17 a.m. EST


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Stifel analyst Scott Devitt reiterated a Buy rating and price target of $4,400.00 on Amazon.com (NASDAQ: AMZN) after the company reported that store sales growth in line had slowed from -200 basis points q/q to +1% y/y FX-adj. due to difficult annual comparisons and consumer purchases returning to a level of normalization.

The analyst said: “Mister Market doesn’t seem to realize that Amazon Retail is trading 1P gross reserved revenue for 3P net reserved revenue + high margin advertising ($30 billion run rate) while ‘it trades inventory for logistical prowess. AWS remains the world’s largest, most dominant cloud business growing +40% YOY to $71B in revenue and margin 30%.The company guided Q1:22 operating profit to a “better than expected” result, in line with our estimates and slightly below consensus.The company announced that it would raise its annual price by Prime subscription by +17% to $139/yr, the first increase in four years. The company has also begun reporting ad services revenue separately from other revenue.”

For a summary of analyst ratings and rating history on Amazon.com, click here. For more information on reviews on Amazon.com, click here.

Shares of Amazon.com closed at $2776.91 yesterday.


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