Amazon.com Inc.'s (AMZN) price target was cut to $4,200 from $4,700 at Credit Suisse as fulfillment and shipping costs rise. Amazon has announced plans for 150,000 seasonal hires in addition to more than 150,000 other hires it has announced. "We assume that from a customer service perspective Amazon will expedite delivery/bear the incremental shipping cost," analysts wrote. "As we further anticipate global logistics headwinds do not abate until mid-22, our EBIT estimates for 2H21/22 decrease accordingly and reflect a scenario in which Amazon has spent roughly $53 billion in CapEx and further taken on incremental expenses without showing potential wallet share gains through greater service levels in the form of faster deliveries across a wider array of SKUs [stock-keeping units]." Credit Suisse rates Amazon stock outperform. Amazon is scheduled to report third-quarter earnings on Oct. 28. Amazon stock is up 2.9% for 2021 so far while the S&P 500 index has gained 20.9% for the period.
(END) Dow Jones Newswires
October 22, 2021 12:44 ET (16:44 GMT)
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