Amazon shares tank as analysts react to profit woes
Investors dumped Amazon stock Friday, a day after the company reported scant first-quarter profits.
Seattle Times business reporter
Amazon.com’s shares sank nearly 10 percent Friday after a handful of analysts lowered their price targets for the online retail giant.
When Amazon announced its first-quarter financial results Thursday, it reported modest profits of $108 million on sales of $19.74 billion. And the company told investors to expect an operating loss of between $55 million and $455 million for the current quarter that ends June 30, compared with $79 million in operating profits in the second quarter of 2013.
That led several analysts to cut price targets for the stock, even as they maintained their “outperform” ratings for the company:
• RBC Capital Markets analyst Mark Mahaney cut his price target for the stock to $400, down from $425.
• Wells Fargo analyst Matt Nemer: $357 to $381 from $417 to $440.
• Robert W. Baird analyst Colin Sebastian: $410 from $425.
Those reductions sent Amazon shares spiraling down $33.32 Friday to $303.83.
The stock has lost more than a quarter of its value since trading as high as $408.06 in January.
Jay Greene: 206-464-2231 or firstname.lastname@example.org