Amazon Slips as Loyalty Numbers Come Under Fire

Maybe Amazon.com (AMZN Quote) customers aren't so loyal after all.

Amazon shares fell 4% Tuesday morning after a Prudential Securities report asserted the company is losing customers almost as fast as it is adding them. The claim contrasts with company press releases that highlight the millions of new customers Amazon acquires each quarter, and strikes at the heart of Amazon's claim that it deserves a premium valuation because of its loyal customer base.

"We have become increasingly concerned that Amazon's customer base is turning out to be far less loyal than once assumed, and as a result may not be so 'valuable' after all," analyst Mark Rowen wrote after the close of trading Monday. Rowen also reiterated his sell rating, a rarity on Wall Street, which he slapped on the company in February. (Prudential has had a banking relationship with Amazon.) ...