Amazon.com downgraded to "sell"

16.10.07 - Stifel Nicolaus

NEW YORK, October 16 (newratings.com) - Analysts at Stifel Nicolaus & Company downgrade Amazon.com (AMZN) from "hold" to "sell."

In a research note published this morning, the analysts mention that the company?s share price reflects continued rise in revenue growth and operating margin expansion at a time when the cycle seems to be peaking. Amazon.com is expected to post its 3Q07 revenues, EBITDA and cash operating income at $3.1 billion, $212 million and $145 million, respectively, driven by several initiatives, Prime and Harry Potter, the analysts say. Amazon.com is expected to face a deteriorating domestic economic environment and tough comparisons in domestic media from 4Q07 onwards, Stifel Nicolaus & Company adds.