This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buy Amazon Stock: Raymond James Analyst

NEW YORK (TheStreet) - Amazon (AMZN - Get Report) surged as much as 10.8% on Friday following strong revenue growth in the third quarter and increasing analyst optimism on the stock.

Raymond James analyst Aaron Kessler increased his rating on the online retailing giant to "strong buy" from "market perform" on Friday.

Kessler believes the company still has "revenue momentum with accelerating growth in the U.S.," particularly since the company noted "millions of new prime subscribers" were added last quarter; strong [Amazon Web Services] growth of approximately 77% this year and an expectation of improving margins next year and beyond from larger more automated warehouses and improving international margins, he wrote in a note on Friday.

"Ultimately we believe long-term non-GAAP operating margins can reach [approximately] 10%," the note said. "We believe shares offer an attractive risk/reward at current levels."

Amazon reported late Thursday a third-quarter loss of 9 cents a share on $17.09 billion in revenue, up 24% year over year. Consensus estimates had expected Amazon to post  9-cent loss on softer revenue, averaging at $16.76 billion, according to Thomson Reuters.

Shares were surging 7.9% to $358.62 at last check on volume of 8.3 million shares, more than triple its average daily trading volume.

-- Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $445.10 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs