While Amazon.com (NASDAQ:AMZN) won't escape the short-term punishment of their share price after their recent quarterly report, over the long haul they're still positioned for a successful run.
Kaufman said, "We continue to believe that while Amazon has excellent long-term growth prospects, the stock should trade sideways near term, due to margin pressure, fully priced valuation and tougher comps. Recent financial results support our thesis of top-line growth with margin pressure. That said, we believe Amazon deserves kudos for being able to grow at a high rate despite a very large base. We are keeping our 2011 revenue numbers unchanged at $45.5B, while lowering our earnings estimate by 8% to reflect continued pressure on operating margins."
Kaufman maintains a "Hold" rating on Amazon.com, which closed Friday at $171.14, losing $13.31, or 7.22 percent. Kaufman lowered their price target on Amazon from $163 to $154.
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