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Wednesday, March 18, 2020

Amazon estimate upped on increasing demand

JPMorgan analyst Doug Anmuth raises his Q1 sales estimate for Amazon (AMZN +0.7%) to $74B, which is $1B higher than the tech giant’s guidance range.
Anmuth: “E-commerce (AMZN, EBAY, (NYSE:CHWY), etc) will benefit as closings of physical stores & fear of public places should accelerate the secular shift of retail online, which we believe will prove sustainable even after the crisis ends.”
The analyst thinks Amazon will “gain incremental share of both total retail & online retail in a downturn, as was the case in 2008-2009.”
Anmuth is also positive on Chewy due to its “high recurring revenue stream, low China supply chain risk, & high exposure to staples-like consumables.”
The analyst also expects strong Netflix (NFLX +1.7%) demand in H1 due to more workers at home and a lack of sports programming. Anmuth raises his 2020 global net adds estimate from 26.9M to 27.8M.
JPMorgan has Overweight ratings on Amazon and Netflix.
https://seekingalpha.com/news/3552957-analyst-raises-amazon-estimate-on-increasing-demand

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