Census Data: U.S. Retail Down 2%, Amazon Up 24%

Amazon.com, Inc. AMZN has been saved by the Census.

Two weeks after issuing underwhelming fourth-quarter financials, the online retailer was vindicated by both poor reads for traditional retailers and a report by the U.S. Census Bureau, which highlighted Amazon’s favorable market position.

Amazon reported deceleration in U.S. commerce revenue growth across consecutive quarters, but, relative to competitors, the company is quickly and greedily gaining ground.

“Most large brick-and-mortar retailers have not reported yet, but all indications are for an especially weak Q4,” MKM Managing Director Rob Sanderson wrote in a Thursday note. “Some retail analysts are calling the season ‘a disaster’ and the worst nonrecession Holiday in memory.”

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Meanwhile, Census data suggested acceleration of market share gain for Amazon, which currently maintains less than a 6 percent hold despite having outpaced industry growth for years.

“We see very significant growth headroom as AMZN drives to transition to online commerce and extends its competitive moat,” Sanderson wrote.

The company’s position relative to competitors renders it “the best longterm growth story available to investors today.”

MKM maintained a Buy rating and a $995 price target on Amazon.