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Squali: Amazon Will 'Rip' If This Happens

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Facebook, Google, Alibaba, Twitter, Akamai Get A Handle On Buy Points (Investor's Business Daily), Inc. (NASDAQ: AMZN) or Alibaba Group Holding Ltd (NYSE: BABA)? Cantor analyst Youssef Squali was recently asked the question on CNBC

'I Would Go With Amazon'

"I would go with Amazon," Squali said. "Again, because the U.S. economy is doing better, the U.S. consumer is doing better...we do think the propensity of Americans to spend will continue to outlast anybody out there."

Amazon channel checks also point to a "strong quarter" on the back of Prime user growth. Regarding the company's conference call and earnings report slated Thursday afternoon, the analyst said he'll be watching the top line. "We're hoping for an acceleration but not modeling for it."

What It'll Take For Amazon To 'Rip'

Third quarter sales accelerated, he added. If this happens again, Amazon "will rip." AWS growth -- consensus expectations of 70 percent this quarter -- is another factor that should be monitored.

Earlier in January, Squali said he expects Alibaba to meet Wall Street earnings and revenue expectations. "Longer-term, BABA remains a key beneficiary of the growing consumption of a growing middle class in China, and rising cross-border trade," he wrote at the time.

Squali holds a $90 price target on Alibaba and a $750 target on Amazon.

Latest Ratings for AMZN

May 2018Telsey Advisory GroupInitiates Coverage OnOutperform
Apr 2018WedbushMaintainsOutperformOutperform
Apr 2018BarclaysMaintainsOverweightOverweight

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