The following is an excerpt from Dan Gallagher | February 1, 2012 | MarketWatch.com |
SAN FRANCISCO (MarketWatch) — Investors took down shares of Amazon.com Wednesday after the e-commerce giant reported a surprising sales miss for the fourth quarter — leading some to wonder whether the company’s breakneck growth over the last year is beginning to ebb.
The shares shed nearly 10% to stand at $175.51 in early trading — giving up gains made since the first of the year.
“While Amazon.com continues to be our highest-conviction, long-duration idea, we believe the stock will be challenged over the near term due to low-margins and continued ambiguity around sales growth,” wrote Morgan Stanley analyst Scott Devitt, who removed the stock from the brokerage’s “best ideas” list but kept his bullish overweight rating.
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