$AMZN Citi - Comments on New CEO of Worldwide Amazon Stores, 'can improve operating margins'
“Yesterday, Amazon named longtime executive Doug Herrington as CEO of Worldwide Amazon Stores (renamed from Worldwide Consumer) and promoted John Felton as its new head of Operations. Given this announcement comes ~2 weeks post Dave Clark's resignation, we believe there was likely minimal disruption to Stores operations and while we recognize the challenges a potential weaker macro is likely to have overall, we also believe Amazon can gain wallet share during periods of macro uncertainty. We note Doug Herrington was most recently head of Amazon's North American Stores business and has been a member of the S-team since 2011 and John Felton led Amazon's Global Delivery Services and was also a member of the S-team since Sept. 2020. With shares trading ~10x our 2023E EV/EBITDA, easier comps in 2H, and our view that Amazon can improve operating margins, we reiterate our Buy rating and $205 target price."