Amazon.com (Nasdaq: AMZN) rose 2 1/16 to 23 7/16 Friday following reports that Credit Suisse First Boston repeated a buy recommendation on the stock.
The recommendation was given added weight by reports that CSFB analyst Jamie Kiggen himself had worked a few days as a seasonal helper at a company warehouse to see how things were going, and came away confident in the company's strategy.
"The general takeaway from our moonlighting is that Amazon is executing on its near-term and long-term financial and operating goals," Kiggen wrote in a report to clients. "Customers are plentiful and active, customer-service levels are high, and operations are becoming more efficient."
Kiggen reportedly expressed some concern about shipping costs, saying customers appear to be taking advantage of the company's offer of free shipping for orders totaling more than US$100.
Amazon was the top e-tailer in November, according to a report issued Thursday by PC Data Online, which said that 3 million shoppers made purchases from its site during the month. Second-ranked JCPenney.com, by contrast, had 894,000 paying customers.
"Online shopping took off in November, with Amazon.com far and away the big winner," said PC Data Internet analyst Cameron Meierhoefer. Toy sales, aided by a hosting agreement with Toysrus.com, boosted results, Meierhoefer said.
Amazon reported a
third-quarter operating loss of $68 million, or 25 cents per share, as
sales rose 79 percent from a year earlier. Chief executive officer Jeff
Bezos has said the e-commerce industry has the potential to grow 50 percent
a year over the next 10 years, with his company meeting or even exceeding
that growth rate.
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