) pre-announced Q4 results, with revenues coming in at the low end of the company's range of guidance. Robertson Stephens downgraded its investment rating on the shares to market perform.
Analyst Lauren Cooks Levitan says it appears that even in a dramatically reduced competitive environment, Amazon struggled to achieve its targets. She is especially concerned by the rate of growth for Amazon's core media products. She cut her $4B revenue estimate for 2001 to $3.75B and widened her $0.62 cash EPS loss forecast to a $0.72 loss.
The analyst says she is challenged to identify a positive catalyst for Amazon until the approach of next year's holiday season when the company expects to achieve profitability. She notes that Amazon, despite trading near its low, still trades at a premium to the group of best-of-breed retailers (all of which are profitable).