Amazon.com (NASDAQ:AMZN) had a good quarter again, beating consensus EPS estimates, and continuing to enjoy top-line growth. Investments in their distribution network is what weighed on the company for the quarter, but that's good for Amazon over the long haul, as they will be prepared for their next surge in growth the expanded distribution network affords them.
Canaccord says, "Amazon continued to see strong top-line growth and exceeded consensus EPS estimates, though the company’s investments into the expansion of its distribution network pressured pro forma operating margins to their lowest levels in a holiday quarter since the company turned profitable. Ultimately, we believe this is a short-term issue, as these investments scale to the level of the existing infrastructure."
Canaccord Genuity reiterates a "Buy" rating on Amazon.com (AMZN), which closed Friday at $171.14, falling $13.31, or 7.22 percent. Canaccord has a price target of $220 on Amazon.
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