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To: Boplicity who wrote (7289)	4/24/2002 1:04:13 PM
From: stockman_scott	Read Replies (1) \| Respond to of 13815

Amazon Rallies After Net Loss Shrinks Wed Apr 24,11:06 AM ET NEW YORK (Reuters) - Shares of Amazon.com jumped more than 14 percent on Wednesday, a day after the online retailer posted a smaller net loss and beat Wall Street expectations thanks to strong international growth and a bounce back in its core books, music and video segment. The Seattle-based company's shares rose $2.09 to $16.15 in early trade on the Nasdaq. Online travel firm Expedia's shares also rose on a strong financial report. The stock was up $6.76, or almost 10 percent, to $77.51. CIBC analyst Paul Keung said he reiterated his "buy" rating on Expedia. "Their merchant revenue picked up more traction than I expected," he said. Several Wall Street analysts raised price targets for Amazon. "The key highlights were that revenue per unit growth accelerated and margins expanded even despite having cut prices and having more price promotions," said Deutsche Bank Securities analyst Jeetil Patel. "They are going to continue to be price promotional. It's very similar to Wal-Mart. They are using their business model to their advantage and passing the end savings to customers, which allows them to gain market share." Patel, who has a "buy" rating on the stock, raised his price target on the company to $19 from $14. CSFB analyst Heath Terry, who also has a "buy" rating on the stock, raised his second-quarter revenue and profit estimates for the company and said in a research note that steady, incremental growth in its revenue and margins will drive Amazon's shares higher over the course of the year. The investment bank said in a research note that it would recommend investors using intra-quarter pullbacks as buying opportunities. US Bancorp Piper Jaffray's Safa Rastchy also raised his price target on the company, to $17 from $15. "They are hitting in all the cylinders. There was not one single area that drove the growth. It was pretty much across the board. They are growing steadily," Rastchy added. Merrill Lynch analyst Justin Baldauf, however, said the company's shares look fairly valued even after the strong quarter. He maintained his near-term "neutral" rating on the stock and said the company's fundamentals over the last two quarters have been impressive. Amazon said in its quarterly financial report filed with the Securities and Exchange Commission (news - web sites) that the SEC had made an informal inquiry about its accounting for certain business alliances. The inquiry, which was previously disclosed in a January filing with the SEC, would not affect the company's operating results or financial condition, Amazon said in a statement. The SEC said it had not made a final determination whether any administrative cease-and-desist process would be started, Amazon said. The inquiry is focused in part on a transaction with Ashford.com, which was acquired by Global Sports last month. Amazon said it believes its actions were proper "at all times." "It was more specific to Ashford," said Patel.