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JPMorgan "a bit more cautious" ahead of Amazon's earnings

Published 10/23/2018, 11:48 AM
© Reuters.  JPMorgan "a bit more cautious" ahead of Amazon's earnings
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  • JPMorgan (NYSE:JPM) is “a bit more cautious” ahead of Amazon’s (AMZN -3.3%) earnings results happening after the market closes on Thursday.
  • The firm cites potential headwinds from Amazon’s recent $15/hour minimum wage increase and the prospect for higher shipping costs under a proposed U.S. Postal Service rate change, which could put pressure on margins.
  • Positive trends include growth in advertising and web services, opportunities from grocery and healthcare, and Prime subscriber adds despite price increases.
  • Firm reiterates an Overweight rating with a “top pick” status and a $2,200 price target.
  • Source: Bloomberg First Word.
  • Previously: Amazon, FedEx (NYSE:FDX), and UPS drop on proposed USPS price increase (Oct. 11)
  • Previously: Amazon sets $15 minimum wage for all U.S. employees (Oct. 2)
  • Now read: Amazon Likely To Surprise To The Upside On Thursday


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