We’re quite familiar with analysts speaking out of both sides of their mouths, having done it for years ourselves. But today’s downgrade of Amazon by normally bold and clear Citi analyst Mark Mahaney may take the cake. (We’ll reserve final judgement until we get the actual report.)
A Citi Investment Research analyst has downgraded Amazon.com Inc., saying a rally in the shares after it reported third-quarter results and Oprah Winfrey’s endorsement of its e-book reader may be unwarranted.
Between Oct. 22 — when Amazon reported third-quarter results — and Tuesday’s close, shares rose 16 per cent. However, the stock had given back all that gain in premarket trading Thursday. The shares were down $2.18, or 4.2 per cent, at $49.80.
Analyst Mark Mahaney wrote in a note late Wednesday that even though Amazon’s third-quarter results were surprisingly strong, results from other online vendors and brick-and-mortar stores pointed to sales declines.
Mahaney downgraded the stock to “Hold” from “Buy.” At the same time, he raised the price target from $52 to $60, because he’s now basing it on 2010’s expected results rather than 2009’s.
So that means buy? Sell? Hold? Well, we’re holding. We’ve scraped and clawed for eight years to eke out the meager 20% gain we have on this puppy, and we’re planning on hanging in there for another decade.
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