Citi says Amazon becoming more profitable with job cuts

Citi analyst Ronald Josey reiterates a Buy rating on Amazon.com with a $145 price target after the company announced plans to eliminate another 9,000 positions, bringing the total number of positions eliminated to 27,000 since November, representing 8% of its corporate headcount. While the restructuring at Amazon Web Services likely speaks of continued softening demand, it also supports stabilizing margins, the analyst tells investors in a research note. The firm believes Amazon is becoming more profitable, particularly in North America Retail.