Aaron Kessler streetmust

Amazon Swings ‘A Knee-Jerk Reaction’: Kessler

Published: Thursday, 25 Oct 2012 | 5:36 PM ET

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By: Bruno J. Navarro
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Swings in the price of Amazon [AMZN 238.24 --- UNCH (0) ] stock after it reported quarterly earnings may have been unwarranted, Aaron Kessler of Raymond James said on CNBC.

On “Fast Money,” he said that an initial look at the numbers didn’t tell the whole story.

“I think it was a knee-jerk reaction to the negative GAAP earnings, but when you look actually look at the numbers, the numbers are basically a little better than expected,” he said.

(Read More: ‘A Few Cracks to Worry About’ in Apple: Gillis)

Long-term, Kessler sounded positive on the online retailer – with a caveat.

“We like the fundamentals, we like the long-term prospects for Amazon, but you’re still trading at roughly 60 times the non-GAAP earnings number on 2013,” he said. “And versus kind of a 30 percent long-term growth rate. That’s still a pretty healthy multiple in our view.”