NEW YORK (TheStreet) -- Amazon's (AMZN) stock has had a rough go of it since the company said fourth-quarter results would be weaker than expected. Recent events suggest, however, that the company not only will come in ahead of its own estimates but is taking market share from eBay (EBAY) , other online sites and perhaps all of retail.
Pacific Crest Securities analyst Chad Bartley, who rates Amazon outperform with a 12-month price target of $435, believes that Amazon is well positioned to benefit from the surge in online shopping in a number of ways, from traditional buying of clothes and goods, to items like video games.
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"We believe Amazon is in a strong position to benefit from the healthy e-commerce spending this holiday and to gain share relative to its online and offline peers. 81% of respondents plan to shop on Amazon.com this holiday compared to 30% for eBay," Bartley wrote in the note. "Also, 33% plan to do most or all of their holiday online shopping at Amazon.com, compared to 4% for eBay."
In October, Amazon said it expects fourth-quarter sales to be between $27.3 billion and $30.3 billion, below the average analyst estimate of $29.75 billion, according to Thomson Reuters. Amazon also expects to post a wide range of operating results next quarter, between a loss of $570 million and a gain of $430 million, including $470 million in stock-based compensation.
Online shopping is expected to be robust this year, with comScore predicting consumers will spend more than $61 billion, up 16% year over year. As Amazon continues to build out its mobile strategy, launching new apps and devices, such as the Kindle Fire HDX 8.9, the company may benefit even further.
ComScore expects mobile shopping to grow 25% over last year's levels, accounting for 13% of total online holiday spending this year, its highest percentage ever. During the calendar fourth quarter, mobile spending is expected to surpass $10 billion for the first time ever.