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Goldman's Heath Terry hikes the price target on Amazon (AMZN +1%) to $355 from $325 in a move...

Goldman's Heath Terry hikes the price target on Amazon (AMZN +1%) to $355 from $325 in a move that would probably seem counterintuitive for virtually any other stock given that the company missed on both lines with its Q2 report Thursday evening and issued weak guidance. "We … believe Amazon is well positioned to benefit from accelerating global ecommerce growth, while leveraging its investment in technology, infrastructure, and customers into higher margin revenue streams," Terry says. That would be nice considering the company's operating margin was just 0.5% in Q2.
Comments (30)
  • ...we beleive that we need bagholders...JPM,GS, WF, it goes on and on...
    26 Jul 2013, 11:58 AM Reply Like
  • "We … believe Amazon is well positioned to benefit from accelerating global ecommerce growth, while leveraging its investment in technology, infrastructure, and customers into higher margin revenue streams,"

     

    I believe Goldman had this bull crap line ready and was going to publish it no matter what Amazon reported. How Goldman, Nomura, and probably a slew of others can consistently raise their price targets in the face of three consecutive years of hard objective evidence that their earnings are declining (and actually turning negative), their margins are declining, and their revenue growth is slowing is literally unbelievable. That Amazon provided guidance that was horrible makes it even more incredible. Talk about a teflon stock, nothing sticks to this dog.
    26 Jul 2013, 12:27 PM Reply Like
  • The same Goldman Sachs exposed scamming the aluminum market?
    http://bit.ly/13hTBhJ
    26 Jul 2013, 12:30 PM Reply Like
  • What I don't understand about the AMZN story is why their customers will stay loyal to them when they start raising prices? Won't that have an effect on their revenue? The strategy will probably work initially, but they're selling commodities. I don't understand why their customers won't seek out the lowest price. Really confused.
    26 Jul 2013, 12:37 PM Reply Like
  • As have said before, this is the most mysterious stock of modern times. I once believed that the stock was only mildly overvalued, that the bulls had some case based on future growth. But it is not true. Amazon is worth at best $100 a share and that is very, very generous. There is no place for 2-4% margins in that company. They can't raise prices. Competition is on all sides. They very well might start hemorrhaging cash in a quarter or two. But what can you do? My fifth series of laddered puts is now toast -- only made a pittance one out of the five. A naked short is out of the question. Maybe at next earnings the stock will be at $400 and their cash flow will be negative and the stock will finally tank. Who knows?
    26 Jul 2013, 12:40 PM Reply Like
  • The message to the bewildered lumpen masses is that its earnings report means whatever the cognescenti choose it to mean, neither more nor less!

     

    Truly a Through the Looking Glass World of scam finance that would make Humpty Dumpty proud.

     

    The shorts have left the playing field. There aren't many retail investors. Today they proved even strangle option trades aren't sane or safe. This is just a circular trading sardine among the cartel and the machines.
    26 Jul 2013, 01:25 PM Reply Like
  • I completely agree, Glenn, that this is indeed the most mysterious stock of modern times. I made the same observation two years ago, and it has only skyrocketed since that time. Its performance completely befuddles me, but frankly, the entire market (i.e., house of cards) is befuddling at this point. Of course, it's really very simple: Lots of hedgies and banks making up for lost time (i.e., 2008-09).
    26 Jul 2013, 05:56 PM Reply Like
  • Why not buy calls?
    26 Jul 2013, 06:55 PM Reply Like
  • Atkins -- I don't see the whole market as a house of cards. Most companies are valued based either on real earnings or on a legitimate chance to grow very large (lnkdin, tsla, for example). Stocks that are bubbles -- where the value is based on a story that is fanciful -- come back to earth in a few months or at most a few years.

     

    Stocks like Tesla Motors are either going to live up to the fairy tale or they are not. If they don't, believe me the stock will come crashing back to earth. Amazon is unique. It has been overvalued almost since its IPO, except for a very brief period after the 2000 crash.

     

    Any sharp pencil examination of their prospects uncovers a deteriorating business model that simply has almost no chance of even growing into its present valuation. The bull story of massive growth, then, when they have the leverage, raising prices and margins is simply an impossible fairy tale. Everyone knows this. Yet the stock keeps going up. For years and years and years.

     

    Conspiracy? Please -- this is not a penny stock -- the amount of illegal deal making that would have to be done to keep this thing afloat all these years is simply mind boggling -- folks at places like GS may skirt the law, but they try very hard not to actually break it.

     

    No. Its like gravity. Many have theories. No one can explain it.
    27 Jul 2013, 10:41 AM Reply Like
  • You know -- I could help all the shorts. If I started buying calls that would be the catalyst for finally making the stock crash.
    27 Jul 2013, 10:42 AM Reply Like
  • Glenn-- agree with all your comments sans one points.

     

    $LNKD is arguably worse overvalued than $AMZN. They will never grow into a market cap much more than 10-15% their current levels.

     

    It remains to be seen how long that will take. I think $LNKD is much worse than $AMZN in terms of 'bubble.'

     

    In regards to $TSLA- I have some Sep and Nov puts. I'm hoping Q2 is a wakeup call... We'll see.
    27 Jul 2013, 08:53 PM Reply Like
  • JM -- Don't short lnkdin. Please. I am good friends with William Lewis who started Career Blazers forty years ago and has written several books on the staffing business. He is an authority. Maybe the authority He says US staffing biz is 350 billion. He believes lnkdin will eventually capture the majority of that business -- all except the high-end top executive/talent recruitment. They have no viable competition. Networking effects overwhelm.

     

    Worldwide addressable market is over 1 trillion. Lnkdin has shot of hitting 10-20 bagger from here. They have almost zero incremental costs -- most expenses are for software engineering talent to build out their product. If you like to gamble, lnkdin is one of the best gambles around.
    28 Jul 2013, 09:34 AM Reply Like
  • The SEC really needs to investigate these analysts. I have hard time believing all of them really buy into the "future profits" BS. Didn't Spitzer nail them in the dotcom aftermath?
    26 Jul 2013, 01:03 PM Reply Like
  • I don't have an account with Goldman, and I don't pay them a dime. I am so thankful that they publicly volunteered this research so that I could directly benefit. Why would anyone pay for their research when muppets like me can get it for free? Thanks for the tip, Goldman...I will buy AMZN at it's all time high with both hands today! {fin}
    26 Jul 2013, 01:40 PM Reply Like
  • don't fight the market...the market loves amazon and netflix..and hates apple. So buy amazon and netflix...and hold your apple untile the ehdgeboys begin loving apple again...lol
    26 Jul 2013, 03:29 PM Reply Like
  • pip, yu must be on their side. NFLX went up near 100% overnight twice, dont you think it can drop 70% overnight after "all of us" chase into it?
    26 Jul 2013, 08:48 PM Reply Like
  • I don't see how amazon are putting their competitors out of business, but inviting more competition instead. My son went to Frys to buy a car stereo, and showed them how much the price in Amazon, they matched the price. What is the benefit buying from
    Amazon, if you can get what you want at stores with the same price?
    26 Jul 2013, 03:36 PM Reply Like
  • At that rate, how much longer will brick and mortar stores survive?
    26 Jul 2013, 06:56 PM Reply Like
  • People should quit listening to these bogus analyst. No stake in this stock either way but BS is BS.
    26 Jul 2013, 03:40 PM Reply Like
  • Thought Best Buy and other electronics are matching the prices now, not sure how this obvious stock manipulation gets tolerated for this long. Corrupted bankers will inflate the price even more so and just burst the bubble our of blue when nobody expects. Maybe when there is another big event in the headlines so it catches less attention.

     

    Or maybe when Amazon actually makes a profit the stock will collapse? Go figure.
    26 Jul 2013, 04:43 PM Reply Like
  • "We … believe AMZN is well positioned to benefit from the non-stop printing of hot money which is inflating bubble stocks. So no matter what happens with Amazon, AMZN stock will always go up. Period."
    26 Jul 2013, 04:45 PM Reply Like
  • it will get to 355$, if it grows at 30% for another year
    26 Jul 2013, 05:31 PM Reply Like
  • I see absolutely no downward catalyst. If it jumped on its most recent poor results, there is no reason to believe it will still be in the low-$300s this Fall.

     

    Sure wish that Bezos were heading-up Apple. Instead, Apple is mired in a horrible PR streak and stuck with Cook. Not even in the same league.
    26 Jul 2013, 06:00 PM Reply Like
  • Is Paulo still short Amazon?
    26 Jul 2013, 06:54 PM Reply Like
  • Save some time and just send a check to Goldman.
    26 Jul 2013, 09:32 PM Reply Like
  • hahahaha. i love the people getting killed shorting this thing. extraordinary business...can fail at any time of course (thank you short sellers.) making a positive difference "in a hurry." not saying buy here but i truly love what Jeff Bezos has done. He unlike most has truly earned his billionaire status. this guy is going to leverage the internet to change our world. he's not suppose to get out of starting gates with such a view...let alone be given the chance to truly succeed in a very profound and historic way. so far Mr. Bezos has done nothing but the latter.
    26 Jul 2013, 11:22 PM Reply Like
  • Investing as act of faith. With time there is proof of a doom strategy. I copy my comment in another article that is relevant to this conversation:
    "What a contrast Apple made breaking down revenue by product line. Amazon's on the other hand is a black box (read TheStreet.com article link bellow) Incredible how analyst deal with stocks as "acts of faith" and investors follow, like in the late 90's with the Internet bobble bursted.
    Amazon is not a transparent company. We don't know how many books are sold compared with eggs, shoes or kindles. Only platitudes as the article notice "we are doing fine", " Kindle sales are great". As a public company Amazon should be more specific and Wall Street more demanding and professional. Scary time to be in stocks that are as inflated as Amazon and analyst continue to hype. I agree with 13761362 previous comment, shorting Amazon now is not a good idea but we will see reality some time soon. Bubbles are not new and analyst make them, creating heroes and myths.
    LINK: http://bit.ly/1btiVvn
    27 Jul 2013, 01:11 AM Reply Like
  • And here's Cramer's prescient take pre-earnings report:
    http://bit.ly/172jUL5
    Cramer refers to Amazon as a "cult stock," which essentially excludes it from the normal valuations and boundaries by which most stocks are measured.
    Even though eBay, which sold off after reporting earnings last week, is a competitor to Amazon, investors shouldn't expect the same thing to happen.
    "eBay shot themselves in the foot," he said, because the company talked about too many negatives, such as currency headwinds and European woes. Amazon doesn’t give you that ammo. It only gives investors the bare bones, telling investors what they need to know and harping on the future and building out infrastructure.
    It is constrained by nothing. ”
    27 Jul 2013, 01:16 AM Reply Like
  • All I can say is the FIX is in with this stock. Total BS. Analysts are either liars or incompetent or both or bought off.
    27 Jul 2013, 05:00 AM Reply Like
  • This will not end any better than it did in 2000. The entire tech world is going to do a repeat of 2000...followed by the whole market. It is time to be out and/or short.
    27 Jul 2013, 06:14 PM Reply Like
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