Citigroup downgrades Amazon to Neutral

In a report released Tuesday, Citigroup analyst Mark May downgrades Amazon.com, Inc.AMZN from Buy to Neutral while decreasing its price target from $414 to $359.76. The Citigroup stated Amazon's AWS price cut projected to be on 04/01/14 leading to a gross margin decline projection on 1 to 1.50 percent year-over-year. Amazons CSOI margins close to 6 percent but most recently dropped in the 2.5 to 3 percent range due to the company's China operations. May adds, domestic infrastructure, and invested a large amount in AWS. Citigroup's marginal profit measurement projection leads to short term valuation on Amazon to decrease, Citigroup analyst believe the company's next two quarters to be impacted by its projected decrease in revenue and influencing Amazons price cut decrease from $414 to $359.76.