Amazon gets a bullish call from Credit Suisse
Credit Suisse reaffirmed its outperform rating and raised its price target on Amazon (AMZN) to $1,350 a share, implying the stock will rally 37% from Tuesday’s closing price. In a note to clients, analyst Stephen Ju said Amazon’s recent acquisition of Whole Foods will help the company expand its same-day delivery service, writing, “we believe the real path for Amazon to create lasting shareholder value is through fulfillment and delivery via Prime Now. To this end, we have modeled in assumptions for Amazon to underwrite the incremental expenses for Flex Drivers starting in 2H17 as it is our expectation for Prime Now delivery zip codes as well as available cities to expand meaningfully in the medium term.” Amazon shares were last trading up 0.5% at $992.41 in midday trading on Wednesday.
Alibaba plans to invest more than $15 billion in R&D
Alibaba (BABA) is looking to get an edge on rivals. The Chinese e-commerce giant is planning to invest more than $15 billion over three years in a global research and development program. The new initiative, called Alibaba DAMO Academy, aims to increase global technological collaboration, advance the development of cutting-edge technology and narrow the technology gap. Alibaba said the program will help it reach its goal of serving 2 billion customers and creating 100 million jobs by 2036.
Chipotle shares fall on warning from Wedbush
Wedbush revised its expectations to the downside for Chipotle (CMG) in the second half of the year. The company now expects third-quarter comparable sales to decline 0.2%, compared to its prior estimate of 3.8% growth. Wedbush also lowered its full-year earnings outlook to $7.24 a share, down from $8.55. Chipotle shares were last trading down 1% at $307.49 a share on Friday.
Snap shares climb on price target hike
Credit Suisse upped its price target on Snap (SNAP) from $17 a share to $20 on expectation that the social media platform added more daily active users (DAU) in North America during the third-quarter than previously expected. Credit Suisse thinks Snap added 3.2 million DAU in the region, up from its prior estimate of 1.5 million.