On Jan 2, Zacks Investment Research upgraded
), a leading player in the fast-growing e-Commerce market, to a
Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Amazon's Kindle platform remains a major growth platform for
Amazon. Amazon has gone on to become a veritable consumer
electronics giant from being an Internet retailer initially. The
company is making continuous efforts to refresh its line-up of
Kindle Fire tablets helping Amazon to gain market share.
Additionally, Amazon announced an exclusive content licensing
agreement with the independent film studio - A24 - in an attempt
to upgrade its movies and television shows on its streaming video
service, Amazon Prime Instant Video. We believe these licensing
deals are helping Amazon to strengthen its position versus
), the leading online video subscription service in the United
The Zacks Consensus Estimate for the fourth quarter remained
steady at 71 cents over the last 30 days. Also, for fiscal 2013
and 2014, earnings estimate remained steady at 75 cents and
$2.50, respectively, over the same time frame.
For the fourth quarter of fiscal 2013, Amazon expects revenues
in the range of $23.5 billion-$26.5 billion (up 46.3%
sequentially, or 17.5% year over year at the mid-point) and
within the Zacks consensus estimate of $26.0 billion. We believe
the company's huge investments in the business are beginning to
have a positive impact on revenues. Amazon is particularly
focused on growing its international business and we expect to
see much stronger growth here.
We believe long-term expected earnings growth rate of 28.7%,
solid product pipeline, expanding Amazon Web Services (AWS)
internationally, content partnerships and strong fourth quarter
revenue guidance make Amazon an attractive investment
Other Stocks That Warrant a Look
Stocks that are worth considering include
). All these carry the same Zacks Rank as Amazon.
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