Amazon.com Snags S&P Upgrade (AMZN)

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By Douglas A. McIntyre Updated Published
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Amazon.com Inc. (NASDAQ: AMZN) has received yet another debt rating upgrade. Standard & Poor’s Ratings Services raised it by a full two notches and kept a positive outlook that could mean more ratings boosts are coming.  The upgrade is based on the belief that the company will keep its growth and momentum going at above-market rates.  The new rating is A- rather than BBB.

In mid-December we saw a ‘positive’ review for the Internet retailer.  Also cited was that Amazon has reduced its debt balances considerably along with having strong sales in the holiday and maintaining a strong outlook.

S&P did throw in that the rapid growth does come with some risks and that the retail sector is highly competitive.  While revenue growth is likely to remain strong, S&P did warn of margin erosion being possible.

We originally had shares down over 1% but after the market recovery shares are down 0.6% at $119.34.  The stock is down from recent highs of just over $145, but the company is still up 100% from its 52-week low.

JON C. OGG

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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