Amazon.com, Inc. (NASDAQ:AMZN)shares declined Tuesday after the online retailer extended its holiday shipping deadlines, allowing customers to order with free shipping by Dec. 19 to receive items before the Christmas holiday.
Meanwhile,Target Corporation (NYSE:TGT) shares edged lower as the retailer, which is offering free shipping on its website, said customers can place orders through Dec. 20 to receive them by Christmas.
The declines come as investors are growing concerned about the impact on the retailers’ margins of the increased shipping costs they are absorbing to offer customers free shipping over such a short time period; the retailers are hoping the additional revenue brought in by attracting last-minute shoppers will more than make up for the shipping costs. AMZN was down 0.9% at $303.34 recently, in a 52-week range of $284.00 to $408.06, while TGT was down 0.3% at $73, in a 52-week range of $54.66 to $74.76.
Amazon said its Prime members can order by Dec. 22 and customers in 12 major metro areas can choose from as many as a million eligible items for same-day delivery, ordering as late as 10:00 a.m. on Dec. 24 and have items delivered by Christmas.
Target noted that after Dec. 20, guests can use its Store Pickup option as a way to make their last-minute purchases. On Christmas Eve, guests can place online orders for store pickup as late as 5 p.m. and have their items ready that day.
Amazon.com, Inc. (AMZN) last released quarterly earnings on October 23rd for the period ending September 30th 2014. The company reported actual earnings per share of ($0.95) against Zack’s Research estimate of ($0.73). This represents a 30.14% surprise downside to the expected number.
The average broker recommendation according to Zacks is 1.85 based on 30 recommendations. On a consensus basis, analysts have a short term target price of $360.33 and expect a long term growth rate of 30.10%. Out of 265 companies within the Internet Commerce industry, the company sits at 86. Zacks gives a current quarter EPS estimate of 0.26 and a Hold rating of 3 which is based on short term performance over the next one to three months. Of the companies included in the Zack’s consensus rating, 16 rate the stock a Strong Buy, 2 rate it a buy and 12 see it as a Hold.
Amazon.com, Inc. (NASDAQ:AMZN) seeks to be the world’s most customer-centric company, where customers can find and discover anything they may want to buy online. The company lists unique items in categories such as books, music, DVDs, videos, consumer electronics, toys, camera and photo items, software, computer and video games, tools and hardware, lawn and patio items, kitchen products, and wireless products.