Internet retailers edged higher in early trading Monday after taking a hit on concern about cash problems at e-tail giant Amazon.com.
Amazon itself was up 1 3/8 at 35 1/4, after falling to a 52-week low Friday on reports that it may run out of money before the holiday selling season.
Goldman Sachs analyst anthony Noto reiterated a trading buy recommendation on Amazon, saying “a monetization deal with a large, established company for cash between now and the holidays could drive the stock” higher. At current levels, the shares are “attractive,” he said.
eBay, Inc. (Nasdaq: EBAY) was up 3/16 in early trading at 54 1/16, after falling 4 15/16 Friday. Goldman Sachs’ Noto reiterated the stock’s position on his firm’s “recommended list” in light of the plunge. eBay, said Noto, will report operating income of $5.8 million in the second quarter, up from $500,000 in the first quarter.
Priceline.com was up 5/16 at 42 1/8, after skidding 3 1/2 Friday.
The plunge on Friday was sparked by reports that analysts were worried about a cash crunch at Amazon, the Internet’s largest retailer. Lehman Brothers analyst Ravi Suria wrote a report saying a combination of “negative cash flow, poor working capital management and high debt load will put the company under extremely high risk” as the crucial season approaches.
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