ISI Group Reiterates Buy Rating on Amazon.com

In a report published Wednesday, ISI Group reiterated its Buy rating on Amazon.com

. ISI Group noted, “4Q EPS of $0.21 was below the Street's $0.28 and revenue growth decelerated to 22% (23% excl. FX). Yet operating margins increased 54bps YoY, driven by a 350bps increase in gross margins. Despite the deceleration in revenues, the improvement in gross margins pushed the stock higher after markets. The mid-point of the company's sales guidance for Q1 suggests a similar growth rate to Q4. Amazon is changing the way we shop, and already accounts for 2% share of U.S. retail sales. Mobile Commerce is accelerating eCommerce and AMZN is the clear way to invest in the trend.” Amazon.com closed on Tuesday at $260.35.