JP Morgan Lowers PT on Amazon.com to $210

JP Morgan has published a research report on Amazon.com AMZN after the company reported a light 4Q showing potential opportunity based on the company's weakness. In the report, JP Morgan writes, "We estimate that roughly half of the $800M+ shortfall during the quarter was likely due to a shift toward 3P sales. Thailand flooding impacted supply in segments of EGM including drives, cameras, peripherals, and accessories, but 3P sellers were able to provide inventory and help Amazon still meet customer demand, albeit at a lower revenue level. 3P growth in video games and consoles was also solid even though Amazon's direct product sales in this sub-category declined Y/Y. We believe Amazon was more selective in 4Q11 in terms of which categories it would compete in on a direct basis, thereby intentionally leaving certain segments to 3P in our view." JP Morgan maintains its Overweight rating but lowers the price target from $235 to $210 on Amazon.com, which closed yesterday at $194.44.