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.
Read more at: MarketWatch.com