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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

Amazon announced 100 million Prime members, but analyst maintains Overweight rating

Its online retail segment could miss first-quarter estimates, according to Piper Jaffray

Amazon.com Inc (NASDAQ:AMZN) CEO Jeff Bezos announced in a letter to shareholders that the company has exceeded 100 million Prime subscribers worldwide.

The Seattle-based company said it added more Prime members this year than in previous years and shipped more than 5 billion items to subscribers.

Despite the milestone number of members, Piper Jaffray analysts said that Amazon’s online retail segment may report lower-than-expected revenue, according to a note reported by TheFly.com.

The savior may be Amazon Web Services, the company’s cloud platform. The number of business using the services has more than tripled in the past year, including high-profile companies like Intuit Inc (NASDAQ:INTU) and GE’s (NYSE:GE) Healthcare unit.

READ: Amazon Web Service boasts big names like Tinder and GE Healthcare, more than tripling active users in past year

Piper Jaffray analyst Michael Olson reiterated an Overweight rating on the shares, giving a price target of US$1,650.

Shares of Amazon were up 1.8% to US$1,554 in early trading Thursday.

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