- Though its shares have tumbled, Amazon (AMZN -9.9%) has received an equal number of PT hikes and cuts (7 apiece) after missing Q4 estimates, offering soft Q1 guidance, and stating it's weighing a Prime price hike as it contends with heavy usage and still-surging fulfillment spend. S&P is the only firm to change its rating, cutting shares to Sell.
- Benchmark remains optimistic about long-term margin expansion, and believes Amazon will still deliver 32% OIBDA growth in Q1. The firm chalks up Q4's major slowdown in EGM revenue growth (23% vs. 29% in Q3) to aggressive holiday season electronics discounting.
- Cowen estimates a Prime price hike would produce $380M-$760M/year in gross profit at current subscriber levels. Morgan Stanley believes the churn impact of a hike would be limited, given its belief "Prime remains one of the best values around."
- Susquehanna likes the fact gross margin rose again. Evercore thinks Amazon's paid unit growth slowdown (25% vs. 29% in Q3) is "largely temporary," and have much to do with Amazon's international media sales being behind its U.S. ops in transitioning to digital.
- Amazon mentioned on its CC (transcript) active accounts rose by 13M Q/Q to 237M. 3rd-party sellers accounted for 39% of paid units vs. 40% in Q3.