Sellside brokers are telling their institutional clients that their top US large cap idea is to go long on Amazon.com, Inc. (NASDAQ:AMZN), according to the Trade Idea Monitor (TIM). The TIM is used by more than 500 institutional brokerage firms around the world to send equity trade idea recommendations to more than 170 hedge and quant funds and traditional long-only asset managers. Users include most of the world’s largest institutional brokers and asset managers.
Timothy Murphy, Director of Americas for youDevise Ltd, explained: "Traders are very bullish on Amazon since it was announced that sales of the latest generation Kindle have already surpassed their 4Q09 performance. 4Q09 is typically Amazon's best quarter. Over the weekend, it was also reported that Amazon plans to allow some sharing of Kindle eBooks. This could give Amazon an edge over the competition, such as Apple’s iPad and Sony's Reader."
As opposed to traditional sell-side research, trade idea recommendations are time sensitive, client specific long/short recommendations, based on all information likely to affect a stock’s price near term. Buy side firms with short horizons use the TIM to assist in stock picking; firms with longer horizons use the TIM to assist in the timing of buys or sells.