Zacks Investment Research downgraded shares of Amazon.com Inc (AMZN) from OUTPERFORM to NEUTRAL on December 20, 2013, with a target price of $415.00.
Amazon.com is one of the largest online retailers in the world. Amazon's Sep-quarter earnings were in-line with the Zacks Consensus Estimate. The only thing weighing on expectations is its investment in fulfillment centers that will have a negative impact on its earnings this year. Aggressive pricing actions are also expected to continue as Amazon goes all out to attract consumers to its platforms. We believe that current investments are supported by a strong balance sheet and expect them to drive the next growth phase. However, considering the effect of investments and discounts, we think earnings could be under pressure. We are therefore downgrading Amazon shares to Neutral.
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