Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Prudential Downgrades Amazon to 'Sell'


Prudential downgraded Amazon.com (AMZN) to sell.

Analyst Mark Rowen says growth was accelerated in the U.S. books, movie and video/DVD unit; and he views the growth as unsustainable. Rowen thinks Amazon's free shipping promotion is not driving enough incremental revenue to compensate for lost gross profit dollars He says its eletcronics, tools and kitchen unit reported flat sequential revenues and deteriorating margins. He says management confirmed profitability in the eletcronics, tools and kitchen unit is not on horizon.

Rowen says Amazon reported strong results, but he believes fundamentals are not exciting enough to justify the current valuation. He sees $0.12 2002 earnings per share; and cut the $0.20 2003 estimate to $0.15.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus