Goldman Sachs Maintains Neutral on Amazon on eCommerce Spending Increase

Goldman Sachs has published a research report on Amazon.com

after comScore reported that eCommerce spending for the for 56 days of the 2011 holiday seasons totaled $35.3 billiion, a 15% increased year over year. In the report, Goldman Sachs writes, "For the past five years, eCommerce sales growth through December 25 has matched growth for the full November-December holiday season, and on average, Amazon's yoy sales growth in 4Q has outpaced holiday season eCommerce by 23 points. As such, the comScore data released today would imply top line growth of 38% yoy to $17.87 bn, slightly below current consensus of $18.19 bn, up 40% yoy. Our current 4Q2011 forecast stands at $18.62 bn, up 44% yoy, which includes 3-4 points of growth from Kindle and Kindle Fire not currently incorporated in Street consensus. While the comScore numbers are just one data point which does not capture international sales or breakout individual companies' sales, taken alone they seem to suggest the potential for downside risk to consensus forecasts for 4Q2012." Goldman Sachs maintains its Neutral rating and $190 price target on Amazon.com, which closed yesterday at $173.89.