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Investors May Be Losing Patience With Amazon: Analysts

If Amazon.com'srevenue keeps falling, impatient investors might start leaving, Evercore Partners analyst Ken Sena told CNBC Wednesday.

Earlier, Amazon posted fourth-quarter earnings, excluding items, of 38 cents a share, above expectations of 17 cents. But the Internet retailer's revenue fell short and it warned of an impending quarterly loss. Its stock fell on the news and closed 7.7 percent lower.

The company still did post strong earnings growth of mid-30 percent year over year, Sena said, but the Street expected 40 percent. He said the company has been spending money to improve "a very strong experience for merchants to ultimately make sure they have the best platform," in order to keep them with Amazon.

"When you look at the spending, I think that, for most investors, continues to be the concern," Sena said. "If the revenue doesn’t show some acceleration, I think there’s certainly loss of patience at this point."

Sena is keeping his overweight rating on the company but he cut his price target to $235 from $240 on the stock. He said he is concerned about Amazon's "overall macro weakness."

In a separate interview, Anthony DiClemente, Barclays Capital Internet analyst, said investors have three concerns about Amazon: slowing revenue, nine straight quarters of declining margins and expensive valuation.

"One of the problems is Amazon has always talked about serving the customer. People love Amazon," said DiClemente, who has a $190 price target on Amazon stock. "The belief is if customers come, then shareholders will follow, and with it the stock."

However, he said, "sometimes when the customer wins it comes at the expense of the profit margin of the company, and that’s what we’re seeing."

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Disclosures:

Ken Sena does not own Amazon shares but the company is an investment banking client of Evercore. Anthony DiClemente does not own shares, but Barclays or an affiliate received noninvestment banking compensation from Amazon within the last 12 months.

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