GO
Loading...

Analyst Bullish On Amazon, Apple for 2012

Strong holiday sales and new products should make Amazon.com and Apple big winners looking ahead, one analyst said Wednesday on “Fast Money.”

Gene Munster, managing director and senior research analyst at Piper Jaffray, set an Amazon.com price target of $256 per share.

Munster said he liked Amazon’s offer of $5 rebates for using its Price Check appwhile shopping at brick-and-mortar retailers.

“They’re taking this holiday fight right to the face of retailers, right in their stores,” he said. “This is yet another clever promotion that Amazon’s doing that doesn’t cost a lot of money, that’s kind of underscoring this fight that Amazon’s having with the offline world.”

The promotion, which Munster said will cost the online retailer around $1.1 million, represents approximately 0.25 percent of its annual marketing budget.

“This is a creative tactic that Amazon’s using when it’s spending all that investor money,” he said, adding that with Amazon working on same-day delivery services, it is also well-positioned to take on competitors.

Taking on Verizon, Netflix & Apple

Munster said Amazon Prime, the company’s streaming video service, would not be affected by Verizon’s plans to challenge Netflix with its own web TV service.

“People don’t get prime because of the video service, so they really haven’t really put much weight into it,” he said.

Apple will likely also move into the video streaming market within the next year or so, Munster predicted.

“This is going to get really competitive, but it doesn’t really change how Amazon sees the world,” he added.

While Amazon did not break out robust sales of its Kindle Fire, which performed well on Black Friday, but Munster estimated sales at around 4 million units for the quarter.

That represents almost 5 percent of total sales, compared to the iPad accounting for 20 percent of Apple sales.

“There’s a lot of controversy that the iPad numbers are going to be soft this quarter,” he said. “The work we’ve done since Black Friday has shown really good demand. It’s showing 65 to 90 percent year-over-year growth. The street’s looking for about 80 percent growth.”

Munster said he liked the iPad’s strength, with a new version expected at the beginning of next year.

We’re still very bullish on the iPad despite some of the apprehension on the street,” he said.

Steve Cortes, however, reiterated his short on Apple.

“Clearly, the analyst community disagrees with me,” he said. “But that’s one of the reasons I’m short, that the analyst community is so unanimously bullish on Apple.”

Cortes said investors and the media have been in love with Apple for good reason but took issue with the stock's performance over the past three months.

“I think the main point is: It has gotten so big, it’s hard to move the needle from here,” he said.

The Kindle, he added, would pose a threat to Apple.

“It’s going to be an iPad killer,” said trader Steve Grasso. “I don’t pick up my iPad anymore.”

Related Stories

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Dec 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL; Najarian is long C; Najarian is long JPM calls; Najarian is long WFC calls; Najarian is long MSFT; Najarian is long INTC; Najarian is long YHOO; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Lindzon is long LPSN; Lindzon is long AMZN; Lindzon is long INTU; Lindzon is long ARBA; Cortes is long Treasuries; Cortes is long INTC; Cortes is long KR; Cortes is long TSN; Cortes is short EUR; Cortes is short DB; Cortes is short XRT vs. S&P long

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO

Stuart Frankel & Co and it’s partners own CUBA

Stuart Frankel & Co and it’s partners own GERN

Stuart Frankel & Co and it’s partners own HPQ

Stuart Frankel & Co and it’s partners own HSP

Stuart Frankel & Co and it’s partners own HSPO

Stuart Frankel & Co and it’s partners own MET

Stuart Frankel & Co and it’s partners own MSFT

Stuart Frankel & Co and it’s partners own MU

Stuart Frankel & Co and it’s partners own NYX

Stuart Frankel & Co and it’s partners own PRST

Stuart Frankel & Co and it’s partners own UAL

Stuart Frankel & Co and it’s partners own XRX

For Charles Grom
DOLLAR GENERAL (DG) is an investment banking client of DBSI and has received non-investment banking related compensation from this company in the past year.

For Alexandra Lebenthal
Lebenthal & Co has positions in CA municipal bonds

For Gene Munster
The following companies have been investment banking clients of Piper Jaffray during the past 12 months: ACOM, DANG, DRIV, MOBI, YNDX, YOKU

Other material conflicts of interest for Gene Munster or Piper Jaffray regarding companies in my universe for which I am aware include: ACOM, DANG, MOBI, YNDX, YOKU: underwriting

Piper Jaffray received non-investment banking securities-related compensation from the following companies during the past 12 months: ACOM, DRIV

Piper Jaffray makes a market in the securities of the following companies, and will buy and sell the securities of these companies on a principal basis:

AAPL, ACOM, AMZN, BIDU, DANG, DRIV, EBAY, GOOG, IACI, LOGM, MCHX, MELI, MOBI, PRTS, RLOC, SINA, SOHU, VCLK, WWWW, YHOO, YNDX, YOKU.

Symbol
Price
 
Change
%Change
AMZN
---
VZ
---
NFLX
---
AAPL
---

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET