Analyst Downgrades: Amazon.com, Inc., Alibaba Group Holding Ltd, and Electronic Arts Inc.

Analysts downwardly revised their ratings and price targets on Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Ltd (NYSE:BABA), and Electronic Arts Inc. (NASDAQ:EA)

by Karee Venema

Published on Jan 29, 2016 at 10:12 AM

Analysts are weighing in on e-commerce concerns Amazon.com, Inc. (NASDAQ:AMZN) and Alibaba Group Holding Ltd (NYSE:BABA), as well as gaming guru Electronic Arts Inc. (NASDAQ:EA). Here's a quick roundup of today's bearish brokerage notes on AMZN, BABA, and EA.

  • Lower-than-expected fourth-quarter earnings and a subsequent round of bearish analyst attention has AMZN down 10% at $571 this morning. Specifically, the stock received no fewer than nine price-target cuts, including one to $685 at Mizuho. Raymond James, Benchmark, and J.P. Morgan Securities, however, raised their target prices to $760, $735, and $825, respectively. Since topping out at a record high of $696.44 in late December, AMZN has been slipping under the weight of its 30-day moving average -- although yesterday's news of a possible foray into the music streaming business sent the shares higher. Option traders, meanwhile, have kept the faith. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Amazon.com, Inc.'s 10-day call/put volume ratio of 1.50 sits just 2 percentage points from a 52-week peak.

  • No fewer than eight brokerages weighed in on BABA, following Thursday's 3.8% earnings-induced slide. Wedbush offered up the dreariest outlook, lowering its price target to $75 from $80. However, amid broad-market tailwinds and a 14-day Relative Strength Index (RSI) of 32 that's nearing oversold territory, shares of Alibaba Group Holding Ltd were last see up 1.8% at $68.11. Should the security resume its longer-term downtrend -- BABA has shed over 23% year-over-year -- more bearish brokerage notes could be on the horizon. Currently, 16 out of 19 analysts maintain a "buy" or better rating, with not a single "sell" to be found.

  • EA has swung 6.6% lower this morning to trade at $65.20, after the company's earnings miss and uninspiring forecast prompted backlash from the brokerage bunch. Benchmark, for instance, cut its price target to $81.48, while Macquarie and Credit Suisse also lowered their target prices. Technically, the stock has been charting a quick path lower since topping out at a record high of $76.92 in late October, down over 15%. Most analysts are upbeat toward the shares of Electronic Arts Inc., though, with 13 maintaining a "strong buy" rating, versus three "holds." Plus, the consensus 12-month price target of $82.85 sits in never-before-seen territory. A re-evaluation of ratings from this upbeat bunch could create more headwinds for EA.
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