Wedbush: Expect strong sales growth at Amazon, or investors have a problem

Apr. 27, 2016 1:23 PM, Inc. (AMZN)By: Jason Aycock, SA News Editor18 Comments
  • Ahead of's (NASDAQ:AMZN -2.2%) results coming after the close on Thursday, Wedbush's Michael Pachter hit up CNBC to predict strong revenue growth and investors who are happy so long as profits are growing.
  • Investors will "have a problem" if the retail business isn't growing in the high teens, which is "table stakes," Pachter says. He sees Amazon Web Services growing around 50% this quarter, a sustainable rate for coming quarters.
  • Other sell-side analysts are "out of touch" with CEO Jeff Bezos' thinking, Pachter says; analysts expect earnings to rise almost fourfold to $4.79/share, while he's expected $3.00 or even less.
  • Elsewhere, a judge has ruled that Amazon is liable for in-app purchases that are made by children without their parents' consent. The FTC had settled with Apple and Google over the issue in 2014, but filed suit against a more defiant Amazon.
  • The three companies now call for a password or opt-in to allow such purchases. The judge is seeking information from the FTC and Amazon about how much the company could owe here.
  • Now read Amazon's Australia Adventure »

Recommended For You

Comments (18)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.