You are using an older browser version. Please use a supported version for the best MSN experience.

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.

AdChoices
AdChoices

More From TheStreet

image beaconimage beaconimage beacon