) as its top pick, citing the company's operational income inflection. Analysts emphasize the need for growth in the eCommerce sector, noting that while Amazon shows promise, other companies struggle to gain momentum.
Bernstein highlights Amazon's potential for incremental margin expansion, driven by cost cuts and typical operating leverage. However, they caution about recent concerns over freight costs and lower-margin sales during Prime Day potentially impacting margins. Bernstein also comments on other eCommerce players, noting eBay appears better positioned among SMID-Caps due to its starting point and buyback lever, although it faces a higher bar."While EBAY won't be immune to macro dynamics, the focus category effort and value/trade-down dynamic should leave it relatively better off," they explain.
Overall, Bernstein's analysis suggests cautious optimism for Amazon, with a belief in the company's potential to drive growth in the latter half of the year despite the broader sector's challenges.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.