Amazon’s quest for constant growth is not leaving it with many friends — except for Wall Street

From industry stalwarts to high-profile politicians, seemingly everyone’s turning their backs against Amazon these days. Except one: Wall Street.

Just this week, old players in two major categories — logistics and pharmacies — turned into foes. FedEx terminated its ground-delivery contract with Amazon, two months after ending its U.S. express shipping deal. Meanwhile, CVS and Walgreens were accused of unfairly blocking Amazon-owned PillPack’s access to certain prescription data.

This comes after several years of stories about retail rivals’ refusal to use Amazon’s AWS cloud service so they could avoid funding its most lucrative business. Vendors and sellers often complain about Amazon’s marketplace policy, and sometimes threaten to stop selling there altogether. Even politically, Amazon has butted heads with city officials in Seattle and New York, while politicians on both sides are calling for tighter regulatory scrutinyon its business.

Wall Street doesn’t seem to care.

For the fourth straight month, all 45 analysts with ratings on Amazon’s stock recommend buying it, according to FactSet. That makes Amazon one of only three companies in the S&P 500, alongside Assurant and Diamondback Energy, to have perfect “buy” ratings. Even following last month’s earnings miss and lower-than-expected guidance, Amazon’s stock barely moved and didn’t see a single downgrade on its rating. Its stock is up 20% this year, outpacing the 16% rise of the broader S&P 500 index.

“Amazon is expected to make more enemies as they grow larger,” said Loop Capital’s Anthony Chukumba, who raised his price target to $2,380 in May. “But none of this really concerns me — everybody hates Goliath.”

Chukumba said the hostile reaction is only natural as Amazon has become a dominant force and is known for its almost limitless ambition. But the animosity is having little effect on his investment decision because he doesn’t believe any of it is going to have a significant impact on Amazon’s long-term financial prospects.

“That’s what it really comes down to,” Chuckumba said, referring to Amazon’s continued growth. “The track record speaks for itself.”

In a series of statements, Amazon noted that AWS retains many retail customers, and that third-party sales on Amazon.com are growing faster than Amazon’s first-party sales.

Source: CNBC

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