Report the third quarter Revenue and earnings on Thursday far exceeded market expectations, and analysts are still optimistic about e-commerce stocks in the holiday quarter. “Data-reactid=”19″> Amazon announced third-quarter revenue and earnings on Thursday, far exceeding market expectations. Analysts are still optimistic about the upcoming e-commerce stocks in the holiday season.
AmazonRaymond James (Raymond James) analyst Aaron Kessler (Aaron Kessler) said in a report,) hard line, wearing parts, soft line and media and other product categories have strong sales growth. “Data-reactid=”20″>Amazon analysts on Prime, sales trends: Amazon Raymond James (Raymond James) analyst Aaron Kessler said in a report that (NASDAQ: AMZN) is in multiple product categories including hard lines, consumables, soft lines and media. Both have strong sales growth.
Main members have a high degree of participation, members shop more frequently and have more categories.
Kessler (Kessler) outperformed the market in Amazon’s stock with a target price of $3,500.
Needham analyst Laura Martin sees Amazon as a “catalyst for the earlier holiday shopping season this year starting from the “Prime Day” on October 13-14.”
Martin gave a “buy” rating on Amazon with a target price of $3,700. He said that the fourth quarter started well, and third-party sellers saw sales increase by 60% year-on-year in the first two days of the “golden trading day.”
“Ad revenue grew to nearly $5B in the third quarter of 2020, which shows that AMZN has hidden business worth about $500B in the open market of its other sales lines,” Martin said.
KeyBanc analyst Edward Yruma called advertising a “key driver of profitability” for Amazon.
The analyst said: “Amazon has turned traffic (AWS) into valuable real estate for advertisers, and in turn has strong advertising performance in the third quarter.”
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KeyBanc’s Yruma said that AWS’ absolute dollar year-on-year growth “is the largest increase the company has seen, with operating margins increasing by more than 500 bps.”
Analysts said that the company’s media assets are valued at $600 billion.
“We believe that the revenue and profit margins of the service sector (including advertising and subscriptions) are growing faster than Amazon’s e-commerce assets, which means multiple expansions over time.”
Yruma’s target price on Amazon is $3,500 and is broken down as follows: North American retail (excluding advertising) is $1200, international retail (excluding advertising) is $525, AWS is $1275, and advertising is $480.
Martin said that Amazon will “get a share of the growing market share.”
“Amazon has 15 years of outstanding performance in transforming its growth investments into new businesses with high return on investment (such as AWS and advertising).”
Latest AMZN rating
|October 2020||Piper Sandler||maintain||overweight|
|October 2020||Credit Suisse||maintain||Outperform the market|
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