Market Overview

Should Investors Buy The Pullback On Amazon?

Related AMZN
Markets Mostly Higher Despite Initial Negative Reaction From FOMC Minutes
Pacific Crest Comments on Twitter, LinkedIn And More Amid Vail Tech Forum
The New Generation of Entrepreneurs (Fox Business)

In a note released Friday, Citigroup analyst Mark May explained why he believes "investors should consider the recent pullback in Amazon as an opportunity to buy one of the Internet sector's blue-chips."

May noted that, due to the 27 percent pullback since January 22, shares of Amazon (NASDAQ: AMZN) are now trading in-line with traditional retailers such as Wal-Mart despite growing four times faster with comparable margins. Additionally, May believes concern among investors about deceleration in unit growth is "misplaced."

Looking forward, May estimates calendar year revenue for Amazon's retail business of $84.3 billion and $100.6 billion in 2014 and 2015, respectively. Further, May estimates AWS/Other calendar year revenue of $6 billion in 2014 and $9.1 billion in 2015.

May currently rates Amazon as a Buy with a $414 price target. Shares have traded down $0.44 in Friday morning's session.

Posted-In: Citigroup Mark MayAnalyst Color News Price Target Analyst Ratings

 

Most Popular

Related Articles (AMZN)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters