Surveys of online e-commerce have started to come in. Sales appear to have been up about 25% for the holiday season, but their were areas of weakness including PCs, books, and music. Luxury goods appear to have done well.
All of this news is troubling the people at Prudential. They sent out a cautionary not on Amazon (AMZN), indicating that data on slow book sales at other online retailers might lead to a downer for the largest online superstore.
Amazon has been something of an internet Lazarus. The shares collapsed below $26 in July. They now change hands at over $37, a nice run of over 40% in a short time.
Amazon’s problem is simple. If it misses estimates in its strongest quarter which includes the holidays, the faithful may flee the stock for a year or more.
Unless of course, Mr. Bezos come up with another idea like selling movie downloads.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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