Amazon.com initiated with "sell"

09.01.08 - JMP Securities

NEW YORK, January 9 (newratings.com) - Analysts at JMP Securities initiate coverage of Amazon.com Inc (AMZN) with a "sell" rating. The target price is set to $69.

In a research note published yesterday, the analysts mention that although Amazon.com is expected to post robust 4Q07 results, uncertainty resulting from the US consumer weakness is likely to compel the company to issue an extremely conservative guidance for 2008. The competitive threat from eBay might result in a higher-than-anticipated increase in Amazon.com's Marketing and Tech & Content spending, the analysts say. Amazon.com is making progress in becoming a $100 billion company by the middle of the forthcoming decade, JMP Securities adds.