Tomahawk, WI 09/11/2014 (Basicsmedia) – Amazon.com, Inc. (NASDAQ:AMZN) has had its fair amount of Up’s and down’s in the market according to CNBC’s Jon Najarian and Dan Nathan, who maintain long and short positions on the stock respectively. It awaits to be’ seen the impact that Alibaba will have on the general online landscape especially in terms of online transactions for Amazon.
Mr. Najarian maintains a bull position on Amazon.com, Inc. (NASDAQ:AMZN) especially at the Back of Bernstein Research Company putting a share price target of $450 on the stock, which according to the analyst signals that the company has a huge potential on the upside.
“[…] Bernstein also put a target of I think $450 on this guy’s Dan.I think that’s a reasonable target for it, believe it or not, given it is in the mid $300. I think this gets to those mid $400 numbers. […] I think that Fire Phone was kind of a big nothing Dan, and I don’t think it caused them that much but it put them on the press,” said Mr. Najarian.
Nathan, on the other hand, maintains a bearish position on Amazon reiterating that Fire Phone amounts to another big mess in the company. The fact that Amazon.com, Inc. (NASDAQ:AMZN) is willing to continue spending more money on a product like the Fire Phone that is not guaranteeing shareholder’s value raises a red a flag on the stock according to Nathan. The analyst also raised concerns on Amazon sales that despite growing by 20%, the company has not reported any improvement in its profit margins.
“I am a very happy customer; I wouldn’t be a happy investor the last three times this company has reported earnings, they’ve disappointed and the stock has sold off the next day 10%. I think sentiments shifted here, I think the long termCFO leaving I don’t think that is great news either,” said Mr. Nathan.
Amazon.com, Inc. (NASDAQ:AMZN) did not perform as expected in the last quarter of which Guy Adami expects the same deterioration to continue in the second half of the year,as a result of a cool down in momentum on the upside.
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