Lowered price targets and downgrade for Amazon; -9.8% premarket


Amazon (NASDAQ:AMZN), says Cowen's John Blackledge maintaining his Outperform rating but lowering the price target to $390 from $410, "delivered a mixed report with units stabilizing and a topline result and guide that met expectations, but the profitability disappointed. Also, AWS price cuts put an unexpected dent in growth."

Also continuing with a Buy rating, but lowering the price target is BofA's Justin Post who cuts to $400 from $420, noting the Q3 profit outlook as coming in well below expectations.

Baird and Evercore also cut price targets, and B. Riley pulls its Buy rating, downgrading to Neutral.

Shares -9.8% premarket

Previous Amazon earnings coverage

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Comments (8)
  • 6034700
    , contributor
    Comments (2048) | Send Message
     
    There is no bottom for AMZN. What happened to the posters who used to tell everyone that they are in it for the long term and recommend purchasing AMZN?
    25 Jul 2014, 09:02 AM Reply Like
  • bgold1955
    , contributor
    Comments (2352) | Send Message
     
    They will be back once the stock rebounds which I believe it will. No position.
    25 Jul 2014, 09:08 AM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1862) | Send Message
     
    they will come back and tell you they sold vast majority at 400 months ago..
    25 Jul 2014, 09:09 AM Reply Like
  • june1234
    , contributor
    Comments (4473) | Send Message
     
    Was trading at $18 in the late 90's, its always been a stock appreciation play for investors and its employees alike. On consumer side everybody uses AMZN, not a hard sell
    25 Jul 2014, 10:28 AM Reply Like
  • mitrado
    , contributor
    Comments (2033) | Send Message
     
    Where is all the money going?
    25 Jul 2014, 11:02 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4747) | Send Message
     
    The money is going into R&D...ie, kindle and phone products...drone research...ect
    25 Jul 2014, 01:06 PM Reply Like
  • varu
    , contributor
    Comments (2) | Send Message
     
    The question I have as an investor in the stock is that after their Q3 guidance can they still afford to provide a loss guidance of millions-billions of dollars for Q4 or is this it for their worst guidance ever? According to my analysis the stock rises before the earning and based on the poor guidance for the next quarter falls. Just before Q4 it can again rise and will fall if the guidance for the next year is worse.

     

    But my question for more experienced investors/traders here is that can the guidance for Q4 get any lower than what they have just projected for Q3?
    25 Jul 2014, 11:53 AM Reply Like
  • 6034700
    , contributor
    Comments (2048) | Send Message
     
    Not only will those who recommended AMZN for the long term come back to post on SA if the stock rebounds but they will tell everyone they sold at higher prices and purchased even more shares before the rebound.

     

    We all know who I am talking about as they were regular posters and they have become very quiet.
    26 Jul 2014, 12:30 PM Reply Like
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