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Wells sees $2B headwind for Amazon from not raising seller fees
The Fly

Wells sees $2B headwind for Amazon from not raising seller fees

Wells Fargo analyst Ken Gawrelski keeps an Equal Weight rating on Amazon.com (AMZN) with a $197 price target after the company announced seller fees would see no inflation in 2025. This is potentially a $2B headwind to the company’s North America operating income and its efforts to monetize its extensive network investment, the analyst tells investors in a research note. The firm believes Walmart’s (WMT) competitive logistics and fulfillment offering are likely having some impact on Amazon. Wells now sees greater risk to 2025 Amazon’s North America income estimates as it thinks flat seller fees year-over-year in 2025 could result in $2B negative impact. In isolation, this would drive a 7% cut to Wells’ already below-consensus $27.8B North America operating income estimate for 2025, the firm points out.

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