Salomon Keeps 'Outperform' on Amazon

Analyst Tim Albright has increased confidence in the online bookseller's ability to break even in the fourth quarter

Salomon Smith Barney maintained its outperform rating on shares of Amazon.com (AMZN ).

Analyst Tim Albright says the company preannounced strong Q1 results in a tough environment, with revenues of over $695 million, at the high end of expectations. He says gross profit of $175 million is ahead of his $139 million estimate and says Amazon indicated a 2001 operating loss of about $50 million, ahead of his $84.3 million loss estimate.

Albright has increased confidence in the company's ability to break even in Q4. He says cash balances exceed his expectation; and thinks the company is on the way to countering Chapter 11 arguments.

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