Amazon loses 12.5% from its results
Amazon has not raised its head since it presented results. And not precisely because they were bad but quite the opposite. It more than beat the market. Experts had expected earnings per share of $ 9.54 per share and it rose to $ 15.79. And in the case of income, the same operation. Some 104,470 million were expected and 108,520 million dollars were obtained, 43% more than last year. We are also talking about a net profit of 8,107 million until March, more than tripling those of 2020.
Beating Wall Street, experts turned upside down with a general improvement in their target prices, as we will now see, and the value peaked at $ 3,554 a share. And that’s where it all ended. The rest have been losses as we can see in its stock chart, in a period that has coincided with the sale of its great insider.
The founder of the company Jeff Bezos, who as usual every year, sells Amazon shares worth about 2 billion for his space company, Blue Origin, to which he has indicated that he will spend more time after his exit from the day to day of Amazon. In this case, the sale is for a larger amount, about $ 2.4 billion. In fact, it has already announced its first manned tourist flight into space, which will soon start selling tickets.
In its quotation graph we see how the value cut 4.8% in the last five sessions, losses that extend to 7.4% in the last month. The falls are also reflected, although to a lesser extent, in the previous quarter, with cuts that are close to 4% and the gains are only 0.64% in the semester. So far this year, Amazon has lost 3.32% in the market.
Regarding recommendations on the value, the improvement after the results has not been long in coming. From Evercore ISI eraise your target price to as low as $ 4,500, especially due to the outlook presented by the company for the second quarter of the year, in which it confirms that it will maintain the same or even higher and better growth than in times of pandemic.
While from Wedbush maintain overweight recommendation the value but they raise their PO from 4,000 to 4,300 dollars a share, also surprised by the guidance of the company in the second quarter, after the magnificent comparative results in 2020, due to the favorable effect of the pandemic on their accounts.
Morgan stanley overweight the stock and raises its PO to $ 4,500, for the room for improvement that the e-commerce business presents, while those related to advertising and the cloud grow, the market leader, AWS. Barclays places its price target at $ 4,300 from the previous $ 3,860, understanding that the company’s high investments will improve services and provide strong long-term value creation. Finally, from TipRanks, the bet on the purchase value for the 31 analysts who follow the value, with a target price of 4,298.55 euros, with an increase of 36.13%.
Amazon target price
Regarding the decision of the Community Court of Justice, which has endorsed this week the tax aid worth 250 million euros that the American multinational received from Luxembourg in 2017 and that in Brussels, the European Commission had ordered to return as it is considered illegal, it can be turn against her.
Some experts consider that it is a double-edged sword that will come back on the company and in general, as The Wall Street Journal points out, on American technology companies because this fact will raise the conviction of the community authorities of the need to change tax regulations to guarantee that the international profits of the FAANGs are taxed in the same way as the rest of the companies of the European Union.
In fact, if the negotiations within the OECD that end this summer do not come to fruition, countries such as Spain, but also the United Kingdom or France will establish their own tax system, the so-called Google tax on these companies. A rate that is already approved in the case of our country, although there is a request from businessmen to establish a morativa, in order to avoid a higher tax on Spanish exports of footwear from the United States until the agreement in the Organization to cooperation and Economic Development.
Also this week the value is taken with the fake reviews: the fake reviews that they put on the table a network of more than 200,000 people who wrote product recommendations, some have ended up with the exit of the platform of Chinese companies.
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