Amazon (AMZN): 5 Reasons To Buy (And One Big One Not To)

Citi gives 5 reasons why you should buy Amazon (AMZN) now. They focus around the sustainability of Amazon’s revenue growth and the still material opportunity for margin expansion at the company:

1) AMZN has one of the strongest growth profiles in the Net sector

2) AMZN is an ecommerce share gainer

3) AMZN has material International exposure

4) AMZN has a very good product innovation track record (latest e.g. = Kindle)

5) AMZN’s FCF valuation appears reasonably attractive.

Citi reiterates BUY, target price $97.

If you can get over the fact that two of Amazon’s biggest sellers (book and cd’s) are dying industries, you might agree.

See Also:
No, Amazon (AMZN) Shouldn’t Buy Borders (BGP). But An Amazon Retail Presence Makes Sense (AMZN, BGP)
Bernstein: Google (GOOG), Amazon (AMZN) To Be Last Standing Internet Giants
Analyst: Amazon (AMZN) is Absurdly Overvalued…And Anyone Who Shorts It Is A Moron

Disclosure: Clusterstock editor Henry Blodget has a long-term position in AMZN.

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