Diamonds and Dogs
Upgrade for Amazon (AMZN). Amazon is one of the few stocks trading higher up a percent following an upgrade at Evercore. The analyst raised his price target to $1,965 a share saying Amazon's shifting business mix and the pace of gross profit growth has become a more relevant indicator of their business health. The analyst also broke down his price target saying Amazon's e-commerce business is worth $230 a share while its third-party business is worth $490 a share. The company's advertising business is worth about $150 a share and its biggest piece, the Amazon Web Services, is worth $990 a share.
One of the factors driving Amazon's future profit growth will be its nascent grocery business. On Friday, The Wall Street Journal reported that the company was planning to open its first non-Whole Foods affiliated grocery store by the end of the year.
Children's Place (PLCE) in the wrong place. The children's retailer is down 11% after warning its January quarter earnings will be less than half what was expected. Children's Place blamed bankruptcy sales at rival Gymboree for their weakness saying they have never experienced a total liquidation of a direct competitor of the size and proximity of Gymboree.
- Headlines provided by Briefing.com