Amazon.com, Inc. (NASDAQ:AMZN) is a leading company which serves its customers through retail websites. They enable the option for customers selling their products through their portal. They also allow authors, musicians, app developers and film makers to sell their content directly to consumers without help of agents.
Amazon.com, Inc. (NASDAQ:AMZN) is going through a torrid time because of a law suit filed against them by FTC for billing parents without their consensus over children in-app purchases. Due to all these issues some people feel that Amazon stock may not be safe anymore. Ben Schachter, Senior Internet analyst at Macquarie Group Ltd. (ASX:MQG) and Aaron Kessler, Internet analyst at Raymond James Financial, Inc. (NYSE:RJF) discussed about Amazon on a CNBC program.
There is concern over the air that FTC issue might peg back the Amazon.com, Inc. (NASDAQ:AMZN) stock back to March or April level. Schachter said that talk on Amazon today is about their cloud computing efforts and what might they do to compete against drop box and other storage companies.
“But broadly speaking, Amazon remains the same story it has for a long time. You either believe in the margin expansion story or you don’t. We remain believers,” Schachter said.
He feels that in near term Amazon.com, Inc. (NASDAQ:AMZN) may be a difficult call to investors. But he thinks that over long term, since many of their businesses are structurally better, investors should continue to see more margins.
Kessler accepts the fact the over the last quarter the bar has been reset for Amazon.com, Inc. (NASDAQ:AMZN) stock. He thinks that the margins over the last quarter are less than expected and bar has been lowered a bit in terms of near term margin expansion. In spite of this Kessler remains a strong believer of Amazon.
“But we still think, longer term margins can get up to high single digit range for Amazon”, Kessler said.
Amazon.com, Inc. (NASDAQ:AMZN) has to handle the tax irregularities issue in the EU due to which there was a slight dip in the stock recently. The key investors in the company are Lansdowne Partners, owning approximately 2.95 million shares and Blue Ridge Capital with 810,000 shares as of 31st March 2014.
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