On Monday, Evercore Partners analyst Ken Sena added Amazon to the boutique investment bank's "Conviction Buy List" on expectations that profit margins are headed higher. In particular, Sena highlights the company's higher margin Amazon Web Service as being able to take online retail market share and grow in importance to overall earnings, in coming years.
While recent earnings show Amazon's profit margins remain at razor-thin levels and its profitability has evaporated, the analyst upgrade signals it doesn't take much for the company to change Wall Street expectations.
In fact, optimism on Amazon hinges on a tweak to assumed long-term growth rates of some of the company's businesses and not upcoming quarterly earnings - giving chief executive Jeff Bezos yet more time to prove skeptics wrong."Given
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV