Tomahawk, WI 03/13/2014 (Basicsmedia) – Share price for Amazon.com Inc. (NASDAQ:AMZN) inched up by 0.49% to $370.64 last day. The stock has been struggling for the past three months in a row, after a sharp downward momentum visible on January 30, 2014. However, in the far-sight there is a 34% improvement in the past 12 months. The consistent decline in the stock price can be attributed more to the negative sentiment regarding the company’s market mix. There is mixed analysts’ sentiment for the stock. While most argue that its trading at an overvalued pitch Bernstein analysts like Carlos Kirjner believe that the stock still has some soul.

Kirjner’s firm has a outperform rating for Amazon.com Inc. (NASDAQ:AMZN) and is still bullish on the stock. Their price target is $420, for it.

What Makes Bernstein Go Bullish On the Stock

Bernstein’s PT and rating gets support from price ratio to forecast sales (and GP) for the next 12 months. The EV/EBITDA ratio gives the most optimistic scenario; a price of $548 while smoothing out the results of multiple estimations brings down the estimate to a realistic $335 a share.

The Case for Amazon Business Model Now and Ahead

The e-Commerce giant is currently earning revenues through multiple streams namely, 1st part, 2nd party and web service transactions. Despite the fact that its web services are a meager percentage of its total operations the company lags behind industry leader International Business Machine Corps (NASDAQ:IBM) by only 270,000 websites on its cloud. The fact that the later is jumping up & down to hush up AWS’s success speaks for the buzz Amazon Inc (NASDAQ:AMZN) has created even by operating at a much smaller scale. IBM seems insecure of its lead!

Margins for the fiscal year 2013 were 27.2% up 21.42% year over year basis; FY 2013 margins were 22.4% of sales. Also, the packaged food and web services segments are seeing growth steadily. Looking at those fundamentals I would suggest risk averse investors can safely “buy and hold” Amazon.com Inc. (NASDAQ:AMZN) while it is still below $400 as it will offer a good earning potential in the year ahead.

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