Amazon slips on pre-earnings Citi downgrade


Citi has downgraded Amazon (AMZN -0.7%) to Neutral ahead of Thursday's Q2 report, and cut its target by $19 to $395.

Though believing Amazon's core retail ops are performing well - ChannelAdvisor's June data was quite healthy - Citi notes many investors have grown frustrated over a lack of earnings leverage. It also thinks heavy capex and major price cuts for AWS will pressure margins over the near-term.

Also: UBS is out with a cautious note, stating survey data indicates heavy opex will limit margin upside.

Shares have underperformed the Nasdaq this year, but have also staged a healthy rally from their May lows. Its 2015 EBITDA estimates are below consensus.

Update (12:10 PM): Shares have shrugged off the downgrade, and are now up 0.4%.

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Comments (4)
  • Budavar
    , contributor
    Comments (1410) | Send Message
     
    If this is not a classic stock manipulation,
    then what is?
    Where is the SEC?
    When a stocks keeps going up on bad news consistently,
    is that not a red flag for an investigation?
    22 Jul 2014, 10:59 AM Reply Like
  • Gary J
    , contributor
    Comments (10867) | Send Message
     
    No it is a red flag for your short.

     

    So sad. LOL
    22 Jul 2014, 11:16 AM Reply Like
  • keelfoot
    , contributor
    Comments (15) | Send Message
     
    I wish I had read this "news" earlier - I missed a nice buying opportunity. Darn!
    22 Jul 2014, 12:09 PM Reply Like
  • brillant(I know it's misspe...
    , contributor
    Comments (28) | Send Message
     
    Hang in-Bezos knows what he's doing.
    27 Jul 2014, 09:28 AM Reply Like
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