Tech

Analysts: Is Amazon's profitability sustainable?

 Amazon's profits 'open debate': Pro
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Amazon's profits 'open debate': Pro

Amazon's blowout earnings on Thursday have analysts wondering if the company can keep the good news coming in the long term.

Read MoreAmazon earnings: 45 cents a share, vs. expected EPS of 17 cents

Eric Sheridan of UBS told CNBC's "Squawk Alley" on Friday that he is concerned about whether Amazon's profitability will be sustainable.

"But we do think they made this move to be a little more transparent, which is a positive moving forward," he added regarding CEO Jeff Bezos' focus on efficiency during the earnings conference call Thursday.

New York Times columnist Nick Bilton was also a part of the conversation and said that "the company really comes down to Prime.

"I think Amazon's core product is delivering these products, and they have a lot of competition coming at them, so the experimentation is something we're going to see in the next few quarters," Bilton said.

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See Apple at $135: Munster
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See Apple at $135: Munster

Gene Munster, Piper Jaffray managing director, told CNBC's "Squawk on the Street" that he is optimistic that Amazon's profitability will continue, without "the roller coaster ride we've been seeing over the past few years."

"The bottom line is Amazon is more focused on profits, they have robots working on their behalf and I think that is going to benefit the stock going forward," he said.

Munster has a price target of $420 and is confident using EBITDA to value the stock based on the company's focus on margins during the earnings call.

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