Amazon Shares Take A Dip
Shares of online retailer Amazon.com fell more than other well-known Internet companies Monday, even with a price target increase from Stifel Nicolaus & Co. analyst.
Amazon shares fell $3.84 or 4.3 percent, to $85.30 in afternoon trading. In the past year, the stock has traded between $36.30 and $101.09. The company’s competitors saw a decline as well, following overall market trends.
In a Monday client note, Stifel Nicolaus analyst Scott Devitt kept his "Buy" rating for the stock and raised his price target to $99 from $94, because of Amazon’s continued relative share gains, strategic initiative like Amazon Prime and increasing confidence in his long-term outlook for the company.
"Amazon’s business has developed to the point in which we believe the company should be considered by investors as an open-source technology platform rather than a retailer," Devitt wrote.
Devitt said that though the company has always been a technology platform, the platform’s maturation "will make the real Amazon even more evident to the market over the next three to five years."
Shares of online auctioneer eBay fell 74 cents or 2.2 percent,to 31.98. In a separate note, Devitt kept his "Buy" rating for the stock but lowered his price target to $39 from $46, saying the change was supposed to refelct the competitive environment.
"We expect that eBay’s quarter is at least inline, with strength in PayPal and a continued weak U.S. currency providing most of the overperformance in the quarter," he wrote.