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Amazon Draws Post-Prime-Day Praise From Wells Fargo

TheStreet logo TheStreet 6/23/2021 Dan Weil
text: Amazon Draws Post-Prime-Day Praise From Wells Fargo © TheStreet Amazon Draws Post-Prime-Day Praise From Wells Fargo

Amazon reported results from its June 21-22 Prime Day event, and the results drew praise from Wells Fargo analyst Ike Boruchow.

At last check Amazon shares were little changed at $3,504. The stock has climbed 9% over the past six months, trailing the S&P 500's 15% gain, as investors were concerned about the Seattle tech and online-retail giant's valuation.

Wells Fargo rates Amazon overweight with a $4,500 price target.

As for Boruchow, "despite the retail brick-and-mortar recovery, e-commerce and Amazon gross-merchandise-volume growth rates both remain robust (39% and 43%, respectively)," he said.

At the same time, "AMZN still represented about 40% of total addressable market growth over the latest 12 months (above the approximately 25% pre-COVID run-rate)."

Amazon is the No. 1 seller of apparel in the U.S., Boruchow said.

On the Prime Day front, "it was the biggest two-day period ever for Amazon's third party sellers, nearly all of which are small and medium-sized businesses," the company said.

"Prime members in 20 countries shopped more this Prime Day than any previous Prime Day. … Members purchased more than 250 million items worldwide."

Customers spent over $1.9 billion on more than 70 million small business products in the two-week lead-up to Prime Day. That was double the sales from the October 2020 promotion ahead of Prime Day.

In other Amazon news, its proposed $8.45 billion deal to buy TV/movie studio MGM will be reviewed by the Federal Trade Commission, The Wall Street Journal reported Tuesday.

The FTC already has begun a far-flung antitrust query into Amazon's business practices, knowledgeable sources told The Journal.

Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Learn more now.

This article was originally published by TheStreet.


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