Collins Stewart Maintains Neutral, $180 Target on Amazon.com

Collins Stewart reiterates its Neutral rating and $180 target price on Amazon.com

as a surprising 4Q miss and disappointing 1Q guide from the company does not materially impact investment thesis. Collins Stewart says, "Amazon reported a mixed 4Q, with revenues of $17.4B missing consensus of $18.3B by 5%, while PF EPS of $0.68 beat consensus of $0.47 by 45%. It marks a break from Amazon's typical performance in recent quarters where it has outperformed on the top-line and underperformed on margin and earnings. ...We believe the major reason is an accelerating mix shift to 3rd party units, as Amazon books a significantly lower amount as revenue (only 6%-15% of merchandise sales) for 3rd party units as compared to Amazon's own unit sales, for the same volume of sold merchandise." AMZN closed at $194.44 a share yesterday.