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."
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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.