Credit Suisse Offers High Level Take Aways From Amazon's re:Invent Event

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  • Amazon.com, Inc. AMZN shares have risen steadily this year and are up 74 percent year-to-date.
  • Credit Suisse’s Stephen Ju maintained an Outperform rating on the company, with a price target of $720.
  • Robust usage growth for the company’s largest products indicate an upward bias for revenue growth forecasts, Ju mentioned.

Amazon appears poised for robust revenue growth in 2016 and beyond, analyst Stephen Ju said, after attending the company’s re:Invent 2015. The event revealed that usage growth for the three largest products of the company, namely compute [EC2], storage [S3], and relational database [RDS], are 95 percent, 120 percent, and 127 percent, respectively.

Ju noted that these figures, barring large price declines similar to that of 2Q14, indicate a “potential upward bias” to Credit Suisse’s current revenue growth forecasts of 50 percent and 42 percent for 2016 and 2017, respectively.

Amazon has launched several new products as part of its efforts to increase functionality and reduce barriers against adoption. Some of the prominent launches include Snowball, a 50 TB hardware unit to reduce friction of migrating data, and AWS Inspector, which helps to detect and remediate security issues.

In the report Credit Suisse noted that Amazon’s clients are less sensitive on price and continue to use the platform for the “breadth and depth of services.”

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Posted In: Analyst ColorReiterationAnalyst RatingsCredit SuisseStephen Ju
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