Today's market rally fizzled a bit, but one big tech name that jumped in the morning held strong all day: Amazon.
Goldman Sachs upgraded the online retail giant and added it to its influential "America's Conviction Buy" list with a six-month price target of $98 (from about $82 after today's gain). Goldman's James Mitchell is predicting revenue growth above 20 percent for the next five to 10 years, even as Amazon critics worry that the slow economy and price cutting will eat into margins this year. Mitchell sees revenue growth—which caught up to Google's last quarter—as a bigger catalyst for gains.
Amazon shares jumped more than 10 percent during the day and managed to hold most of those gains even as the Dow, which peaked above 13,000 this morning, pulled back to end the day down.
It's a reprieve for a stock that has lagged behind other tech companies in rebounding from an absolute drubbing early this year. Howard Lindzon, who liked the stock back when it traded in the 60s says, "You can't not own the tentacle retailer."
And what about the Kindle, Amazon's wireless reader that is indeed becoming popular among at least the more tech-savvy readers? Around the office, the general feeling is one of love for the little white square, after a whole lot of headaches. Long waits just to get the thing were followed by some glitchy software, but an informal poll suggests most of the responses are Kindle-friendly—even with its $399 price tag.
What the Kindle's relative success means for Amazon's revenue is up for debate, especially given some questions surrounding just how many of the things have been sold. Goldman says up to 50,000 have been in the first quarter. Citi has put the number between 10,000 and 30,000. Silicon Alley Insider says analysts are still throwing darts.