Market Overview

Amazon Analyst Turns Bullish After Sell-Off

Amazon Analyst Turns Bullish After Sell-Off

The battering, Inc. (NASDAQ: AMZN) shares took in the recent tech sell-off has led one analyst at Bernstein to turn bullish on the e-commerce giant's stock.

The Amazon Analyst: Mark Shmulik upgraded shares of Amazon from Market Perform to Outperform and maintaining a $3,400 price target.

The Amazon Takeaways: Amazon is positioned to increase its dominant share position when the return to physical stores occurs, Shmulik said in a Tuesday upgrade note.

The company has quietly made substantial inroads into grocery and shopping verticals, the analyst said. 

COVID-19-related disruption has vindicated Amazon's investment in one-day shipping, which helped the company deliver best-in-class service levels, he said.

All signs suggest Amazon is growing ata new level, increasing fulfillment capacity by 50% year-over-year in 2020 with more than 100 new facilities and plans to hire an additional 100,000 workers, Shmulik said.

The company's recent announcement of 1,000 neighborhood hubs aligns with Bernstein's original thesis of an omnichannel end state, the analyst said. 

Going forward, Amazon's share gains could be even more pronounced in 2021 than in 2020, with recent results indicating the company is only strengthening its dominant market position, he said.

Bernstein expects strong business momentum, with the fourth quarter likely to the catalyst.

"Amazon is well positioned to benefit from the similar permanent pull forward in the hyper-scale cloud market and we continue to be the bull on the street for Amazon's ad business," Shmulik said. 

The nearly 16% sell-off in Amazon shares in recent weeks creates an attractive entry point, the analyst said. 

Related Links:

Amazon's Hiring Spree Reinforces Strong Consumer Demand

Why Amazon Is Among Morgan Stanley's Top Picks For Q4, 2021

Photo courtesy of Amazon. 

Latest Ratings for AMZN

Oct 2020Morgan StanleyMaintainsOverweight
Oct 2020Morgan StanleyMaintainsOverweight
Oct 2020MizuhoMaintainsBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings


Related Articles (AMZN)

View Comments and Join the Discussion!

Posted-In: Bernstein Mark ShmulikAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

TMOSVB LeerinkMaintains525.0
ABTSVB LeerinkMaintains115.0
DCTRBC CapitalMaintains51.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at