Markets & Finance

Prudential Downgrades Amazon to 'Sell'


Prudential downgraded Amazon.com (AMZN) to sell.

Analyst Mark Rowen says growth was accelerated in the U.S. books, movie and video/DVD unit; and he views the growth as unsustainable. Rowen thinks Amazon's free shipping promotion is not driving enough incremental revenue to compensate for lost gross profit dollars He says its eletcronics, tools and kitchen unit reported flat sequential revenues and deteriorating margins. He says management confirmed profitability in the eletcronics, tools and kitchen unit is not on horizon.

Rowen says Amazon reported strong results, but he believes fundamentals are not exciting enough to justify the current valuation. He sees $0.12 2002 earnings per share; and cut the $0.20 2003 estimate to $0.15.


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus