"The company's focus on growth investments/content is likely to pressure profitability and margins near-term, but we expect these investments to result in outsized growth and further market share gains, yielding higher margins when growth starts to normalize," analyst Youssef Squali wrote in a research note.
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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 robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."
- You can view the full analysis from the report here: AMZN Ratings Report