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Shares of Amazon (NASDAQ:AMZN) closed the day down 3.66 percent, and in the absence of other major catalysts, it looks like a downgrade from analysts at JPMorgan is to blame. The stock was cut from Overweight to Neutral at the firm, as 2013 revenue, margin, and profit forecasts were lowered.
“We believe gross profit growth of +40% Y/Y was a major driver of Amazon’s stock in 2012. In addition to GMS and unit growth, we think gross profit growth provides a good proxy for Amazon’s top-line growth as it normalizes for the mix- shift 3P sales,” wrote the analyst.
“We believe gross profit growth of +40% Y/Y was a major driver of Amazon’s stock in 2012,” he added. Looking ahead, “we expect gross profit to decelerate more significantly to 31% Y/Y in 2013.”
Here’s a quick breakdown of the analysts revised estimates, how they compare against consensus:
|2013 Revenue Estimate||2013 Gross Profit Margin Estimate||2013 profit per share estimate|
|JPMorgan Analyst||$75.5 billion||23.6%||$1.63|
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