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E-commerce leader Amazon.com (AMZN – 43-3/16) was handed some mediocre news today when an analyst at Merrill Lynch (MER – 70-9/16) widened his expectations for the company's future losses. The analyst raised his per-share-loss expectation for AMZN's third quarter by two cents, expecting a 32-cent loss for each share. Additionally, he decreased his expectations for 2001, expecting the company to now lose 63 cents, as opposed to his previous estimate for a 53-cent loss.
These estimate shifts notwithstanding, the MER analyst maintained his long-term "buy" rating on the equity, stating that the company is just enduring an "awkward" period at present. Not to be outdone, brokerage firm Bear Stearns (BSC – 70-7/16) initiated coverage on AMZN today with an "attractive" rating.
AMZN, which has climbed over 50 percent higher since the end of July, is trading over two percent higher in mid-morning activity.