By Davit Kirakosyan
JMP Securities said it continues to view Amazon (NASDAQ:AMZN) and Etsy (NASDAQ:ETSY) as the best stocks to own in its coverage, given their robust platforms best position them to weather a volatile macro environment.
According to the firm, Etsy’s upper funnel trends remained the most resilient in February within its coverage, while Amazon demonstrated strength compared to its peers with improving upper funnel declines.
The firm reiterated its Market Outperform rating and $140 price target on Amazon, noting that the company averaged 277 million worldwide MAUs in January and February. “Our analysis suggests AMZN will need to average 255M MAUs to achieve consensus estimates of $79B e-commerce revenue (1P+3P). This implies AMZN is pacing ~8% ahead of expectations, said the firm.
It also maintained the Market Outperform rating and $150 price target on Etsy, noting that the company generated 1 billion visits to its websites through February. Assuming no additional month-over-month increases in visits, the company has progressed 67% toward the number of visits required to achieve Q1/23 revenue estimates of $625M.
“This suggests that ETSY is pacing in line with expectations. Given ETSY's strong 3P data trends, we see its stock declines as a result of risk-off behavior from investors,” said the firm.