Amazon will report second-quarter earnings later this month, and Mahaney believes that the online retailer's revenue growth could slow from 34% year-over-year to 30% year-over-year, as foreign exchange and macro headwinds prevail in the quarter.
comScore noted that there was a 107% increase year-over-year in Amazon's page views in May, down from 114% in April. "We have noticed a reasonable level of correlation (R-squared ~ 90%) between Page Views and AMZN's reported NA (North American) revenues," Mahaney noted.Despite these short-term concerns, the analyst cited management strength, as CEO Jeff Bezos and his team continue to focus on innovation and experience. Mahaney also highlighted Amazon's "competitive moat," the continued trend towards e-commerce, and an attractive business model as reasons to own the company for the long term. He reiterated his "buy" rating and $275 price target. Analysts polled by Thomson Reuters expect Amazon to earn 2 cents a share on $12.91 billion in revenue. The company will report its second-quarter results on July 23. Going back to 2009, Amazon shares have increased six times on the day after their announcement, and fallen six times, with one time notching a 0% gain, according to Mahaney's research. Shares of the online retailing giant have jumped 24.41% year-to-date. AMZN data by YCharts
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