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Piper's Gene Munster Defends Amazon: 'Investors Misinterpreting ChannelAdvisor's Data'

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Piper's Gene Munster Defends Amazon: 'Investors Misinterpreting ChannelAdvisor's Data'
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Amazon.com, Inc. (NASDAQ: AMZN) sold off Tuesday as Prime Day was underway. The stock saw a sharp downturn around 1:42 p.m. ET after it was reported ChannelAdvisor said Prime Day sales were flat year over year.

"We believe investors are mis-interpreting ChannelAdvisor's reported data on Prime Day," Piper Jaffray's Gene Munster said in a mid-day note. "ChannelAdvisor has a crystal ball into the sub-segment of Amazon volume it conducts, but we believe it provides a limited read on overall trends."

Related Link: Price Check: Are Amazon's Prime Day Deals Better Than Walmart.com Prices?

The analyst laid out three "core" reasons to support this thesis:

  • 1) ChannelAdvisor works with only a subset of Amazon sellers and likely isn't capturing the full extent of brands onboarding for Prime Day 2016.
  • 2) ChannelAdvisor reports same-store sales trends and, given Prime Day sellers have more than doubled year-over-year, same-store sales metrics should face headwinds.
  • 3) Amazon appears have reorganized the deal flow/structure of Prime Day.

"With Prime Day members up 40-50% y/y since last Prime Day, better press coverage, and much stronger brand/merchant engagement, we believe Prime Day will deliver 37%+ unit growth vs. 2015," the note concluded.

The firm maintained an Overweight rating on the stock.

Shares traded recently at $747.32, down about 0.9 percent or $6.60 per share on the day.

Latest Ratings for AMZN

DateFirmActionFromTo
Mar 2017BarclaysInitiates Coverage OnOverweight
Jan 2017Aegis CapitalInitiates Coverage OnBuy
Nov 2016CitigroupMaintainsBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

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