Piper Jaffray Overweight On Amazon

Piper Jaffray is out with a research report on Amazon.com, Inc. AMZN and it has an Overweight rating and a $271 price target on shares. In a note to clients, Piper Jaffray writes, "We believe AWS accounts for 2% of revenue today and will grow to be 3% in 2013. While the business is small, it is growing faster than we previously believed. We are raising our AWS growth rates from 50% to 80% for 2011, and from 50% to 60% for 2012. We are maintaining our 2013 and 2014 50% growth rates. We estimate the cloud computing and storage market will grow from $4 billion today to $15 billion in 2015, and at that time could account for 5% of overall Amazon revenue. Given aggressive pricing of AWS, we now believe operating margins are likely closer to 5%, below our previous estimate of 15%." Shares of AMZN lost $1.39 yesterday to close at $177.54.