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Amazon Facing Lower E-Commerce Spending - PJ

Piper Jaffray on 1/28/08 reduced their 1st qtr EPS from $0.36 to $0.34 and the price target from $98 to $68 for Amazon. This week Piper reduce earnings again down to $0.30 from $0.34 and the price target goes up from $68 to $74? The full year estimates by Piper for Amazon during this period has also gone from $1.78 down to $1.52 (15% drop in earnings expectations!). It is interesting that over 90% of Amazon's sales consist of discretionary items such as books, CD's, movies and small electronics. As we enter this consumer-led recession aren't discretionary items the first things that comsumers cut back on by definition?.