The e-commerce giant typically has a "halo" around it in the eyes of investors during this season until they find out how much the company had to spend on packaging, noted CNBC's Kayla Tausche on "Squawk Alley" this morning. Amazon may be facing some trouble this holiday seaosn as some holiday shipments may be grounded due to a strike by 250 pilots at Air Transport Services' (ATSG) ABX Air.
However, Amazon.com seems to be better prepared this year than last year when it was "really surprised" at the demand from third party retailers during the season, Goldman Sachs' analyst and show guest Heath Terry said.
The company started preparing back in September when it pulled a lot of third party inventory, he noted. This will ultimately end up bringing Amazon.com some "pretty meaningful share gains" because it's the only company you can rely on for last-minute gifts.
Expectations for the retail sector ahead of the Holiday season are "pretty high" all around, Terry noted. This is dangerous for companies like Amazon.com as "we tend to get a little bit ahead of ourselves."
(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial.)
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Amazon.com as a Hold with a ratings score of C+. COM INC (AMZN) a HOLD. The primary factors that have impacted the team's 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.
You can view the full analysis from the report here: AMZNAMZN data by YCharts