Amazon Downgraded To Sector Weight From Overweight By New York Analyst

(The post below is an excerpt from the original.)

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…In a note to clients on Friday titled “As good as it gets (for now),” Pacific Crest’s Edward Yruma cut his rating on Amazon.com, Inc. (AMZN) to Sector Weight from Underweight. While Yruma still likes the company and its stock, he simply feels most of the good news has already been priced in.

Said Yruma:

“Amazon’s 1Q17 results were impressive, however, the stock is approaching our $961 target and stepped-up competition may dampen near-term upside.

1P [first party] growth rates point to moderating sales growth, and retail competition is intensifying.

Nevertheless, we remain constructive long term and would look for a more-attractive entry point.”

Amazon’s first-party sales rose 16% in Q1, matching the fourth quarter rate, but down from 21% in Q1 2016.

Similarly, Amazon Web Services (AWS) growth rate appears to be waning. That segment saw 43% growth in Q1, down from 47% sequentially.

In contrast, Microsoft’s Azure cloud business surged 93% in the first quarter.

Yruma retracted his $961 price target for AMZN, which represents a 5% upside from current levels, and didn’t provide a new target for the stock.

Amazon.com, Inc. shares closed at $924.99 on Friday, up $6.61 (+0.72%). Year-to-date, AMZN has gained 23.35%, versus a 6.97% rise in the benchmark S&P 500 index during the same period.

AMZN currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #3 of 45 stocks in the Internet category.