Amazon.com (AMZN) is one of the largest online retailers in the world. Although North America revenue has been somewhat impacted by the recession, the company is seeing a very strong holiday season.
The higher-margin international business has also been growing, resulting in a more favorable mix of business. Additionally, the company has solid financials, which could be utilized to pursue growth opportunities.
Although competition in online retail is heating up, which has the potential to weaken prices and lower margins, we think the company has the market position and financial muscle to outgrow others in the space. Consequently, we are upgrading AMZN shares to Outperform.Zacks Investment Research
