Amazon (NASDAQ:AMZN) was chosen by New Street Research as a top pick in a report highlighting new coverage on a variety of internet stocks. The forecast of a resurgence in e-commerce in 2023 is a major premise of the bullish beginning. As a result of this resurgence, Amazon’s profitable ad and AWS businesses are likely to keep going in a strong direction.
As it takes advantage of a large increase in logistics and fulfillment spending from 2019–2022, “we expect Amazon to begin to gain eCommerce share again exiting 2023,” the initiation noted. “We anticipate higher operating leverage and margin upside” as a result of the ongoing shift in revenue mix toward higher margin industries (led by Amazon Web Services and advertising).
Amazon Stock Outlook
The study says that Amazon’s (NASDAQ:AMZN) dominance in streaming, especially in streaming sports, is a big plus. The stock was given a Buy rating and a $130 price target by New Street. Shortly after the market opened on Wednesday, shares of the Seattle-based software giant fell 1.55%.
Amazon (NASDAQ:AMZN) said in an SEC filing late on Tuesday that it had reached a deal with a number of lenders for an $8 billion unsecured loan that would be used for general business purposes.
The company’s term loan has a 364-day maturity date and a 364-day extension option. The secured overnight financing rate plus 0.75% will be the beginning interest rate for the term loan. The interest rate spread will go from 0.75% to 1.05% if the corporation chooses to extend the loans’ maturity by an additional 364 days.
In a statement, an Amazon representative said, “Given the unpredictable state of the economy as a whole, we have used a variety of financing options over the past few months to pay for capital expenditures, debt repayments, acquisitions, and working capital needs.”
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