Shares of Amazon.com (AMZN) - Get Report were lower in early morning trading on Tuesday after the stock was downgraded at Raymond James to "Market Perform" from "Outperform."

The firm removed its $925 price target on the stock. 

Amazon hasn't received a downgrade from a major sell-side firm in over a year, according to Street Account.

The eCommerce giant needs to demonstrate improved profitability to justify further gains, Raymond James analyst Aaron Kessler noted.

"We believe shares are fairly valued and near our previous price target. ... At current levels, we believe Amazon will need to begin to show greater operating [profit margin] leverage for shares to move meaningfully higher and reach our bull case," Kessler wrote in a note to clients today. "Specifically, we would like to see improved margins/less losses for International, shipping costs, Prime Video."

(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial).

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