Amazon Still Benefiting From Its 'Loyalist' Head Start

In a recent report, analysts at Oppenheimer reiterated a $745 price target and Outperform rating on shares of Amazon.com, Inc. AMZN.

The experts see strong momentum in the eCommerce and cloud businesses in the U.S., the note assured. Takeaways from last Friday's call with the CEO of HookLogic, a retail CPC ad exchange, suggested robust momentum for eCommerce overall; a substantial shift to mobile, the biggest disrupter of the year; and that the company “continues to benefit from its Prime or ‘loyalist’ head-start.”

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The analysts defined the holiday season as a “Waterloo” for brick and mortar retailers. Sales there fell 10 percent year-over-year, while –according to COMSCORE, Inc. SCOR and ChannelAdvisor Corp ECOM data- online sales rose by 20 or 21 percent. Moreover, they added, the spread between Adobe Systems Incorporated ADBE’s Digital Index and peers suggests Amazon’s share is surging, and historical data points towards an inflection point for the company versus the U.S. Consumption and Retail Sales Index.

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Finally, the analysts explicated that, discussions with Cloud vendors AT&T Inc. T, Equinix Inc EQIX, InterXion Holding NV INXN and an industry consultant, Opco analyst Tim Horan, “suggest stable pricing trend.”

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.