NEW YORK (TheStreet) -- Shares of Amazon.com Inc (AMZN) - Get Report were rising, higher by 0.75% to $529.96 in late morning trading Wednesday, after the ecommerce giant had its rating raised by analysts at Stifel Nicolaus this morning.
Analysts at the firm said Amazon has emerged from its "extensive and extended" investment cycle as a "bigger, stronger, faster company."
Stifel upgraded the stock to "buy" from "hold" with a $700 price target.
Analysts called Amazon's latest earnings "game-changing" after showing revenue acceleration, strength in Amazon Web Services, and continued expansion into international markets.
Seattle-based Amazon.com is an e-commerce company that sells a range of products and services through its various owned and affiliated websites.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 173.0% when compared to the same quarter one year prior, rising from -$126.00 million to $92.00 million.
- AMZN's revenue growth trails the industry average of 34.1%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 131.67% to $1,997.00 million when compared to the same quarter last year. Despite an increase in cash flow, AMAZON.COM INC's average is still marginally south of the industry average growth rate of 132.80%.
- AMAZON.COM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMAZON.COM INC swung to a loss, reporting -$0.54 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($0.49 versus -$0.54).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market, AMAZON.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: AMZN Ratings Report