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Former Merrill Lynch Analyst Upgrades AMZN to "Shinola"

Published on April 25, 2007
by John Paczkowski

His proclivity for pumping stocks that he privately derided as “POS” (“pieces of s—“) aside, who better than former Merrill Lynch analyst Henry Blodget to comment on the Amazon run-up today? After all, it was Blodget who once predicted Amazon shares would someday trade at $400. And while that’s a far cry from where the company’s trading right now, it did spike 22% to its highest price in more than two years today, thanks to some strong first quarter earnings. Amazon reported a first-quarter profit that more than doubled as sales jumped 32% — a nice change for a company that has for eight consecutive quarters posted earnings that have dropped or failed to increase from the prior-year period. Said Blodget:

Amazon hasn’t become the company I hoped it would back when I put that $400 target on it ($67 in today’s split) in December 1998. It’s still a great franchise, though, and I’m still a happy Amazon customer. I don’t own the stock because I expect it to soar. I own it because… well, because I’m going to own it until it breaks through $400 ($67) again or goes bust, whichever comes first. I don’t even follow the company that closely anymore (too depressing). But last night’s quarter, and today’s 25% pop, certainly come as a breath of fresh air.”

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