Piper Jaffray Said Weak Holiday eCommerce Data Supports Thesis of Slow '09 For Amazon (AMZN)
Analysts at Piper Jaffray commented on Amazon.com (Nasdaq: AMZN) following comScore data which showed that total eCommerce sales declined 4% Y/Y QTD for Q4 and declined 37% Y/Y in the last full week of December. comScore said this was the first time they’ve seen negative growth rates for the holiday season since they began tracking e-commerce in 2001.
Piper Jaffray said, following the data, they are incrementally more confident that their thesis of a 10% decline in 2009 industry eCommerce sales and 10% growth in Amazon sales will in fact play out. Based on this view, Piper feels the Street estimates for 2009 revenue of $21.3B are too high, and is 6% above their $20.1B estimate.