Deutsche Banc Alex Brown Cuts Estimates for Amazon.com
Deutsche Banc Alex Brown cut its estimates for Amazon.com (AMZN ) after the online retailer posted a fourth quarter loss of $0.25 compared to a loss of $0.55 a year ago (pro forma) on a 44% rise in sales.
Analyst Jeetil Patel said he sees a difficult near-term market environment and lower growth rates, but added the economy will pick up in the second half of 2001. Patel also said he sees increased industry competition as traditional players move online.
Patel also noted Amazon.com cut its 2001 revenue guidance. The analyst cuts his 2001 revenue estimate to $3.45 billion from $4.1 billion, and widened his 2001 loss estimate to $0.85 from $0.76. His investment rating on the stock is market perform. Shares of Amazon.com were trading down 15/16 at 18.