Stock Market Watch

UBS Upgrades Amazon.com

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Shares of Amazon.com Inc. (NASDAQ: AMZN) climbed about 5.80% on Friday after UBS upgraded the Kindle maker’s stock to a “buy” from a “neutral” and raised the price target to $385 from $305.

UBS analyst Eric Sheridan said in research note that the Company’s recent decision to hire 70,000 seasonal employees in the holiday season quarter reflects its bullishness over the fourth quarter.

In addition, the analyst also highlighted Amazon’s “underappreciated advertising business”, growing traction of its Kindle ecosystem (convergence of hardware and software).

Sheridan expects the Company to post fiscal third quarter results in-line with expectations. Amazon is slated to report third quarter results on Thursday, after the market close.

“Amazon and Google (NASDAQ: GOOG) should benefit from the convergence of hardware and software in the intermediate term,” said Sheridan in a research note.

“Increasingly, we believe that the importance of having consumers living in an ecosystem will move to the forefront for companies such as Amazon and Google,” added the analyst.

Nonetheless, Sheridan believes that the near-term outlook for online marketplace stocks such as eBay, including AMZN, might be “volatile” due to the falling consumer sentiment caused by the government shutdown. Earlier this week, eBay handed weaker-than-expected earnings and revenue outlook for the fiscal fourth quarter. However, Sheridan expects Amazon to post strong results in the fiscal fourth quarter.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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