April 12, 2023
COMPANY UPDATE
Content Creators and Aggregators
LAURA MARTIN, CFA & CMT
(917) 373-3066
lmartin@needhamco.com
Amazon.com, Inc. (AMZN)
RATING
BUY
PRICE TARGET
PRICE
52-WEEK RANGE
$120.00
$99.92
$81.43 - $158.65
DAN MEDINA
(626) 893-2925
dmedina@needhamco.com
AMZN Deep Dive: Twitch's Current & Future Value
KEY DATA
REPORT CATALYST
Market Cap (MM)
In this report:
Price (04/11/2023)
We include Twitch's revenue growth since being purchased by AMZN in 2014;
2.
We value Twitch;
Avg. Daily Volume
3.
We discuss the Top 10 ways Twitch drives upside value for AMZN over the next 12-24
months.
ESTIMATES
We calculate that Twitch is worth approximately $45B, or 4% of AMZN's total market cap. Of
this total, about $19B is Twitch's "direct" value (ie, if it was separately traded) plus $25.6B is its
"indirect" value (ie, the value Twitch creates for other AMZN businesses).
$99.92
52-Week Range
1.
TWITCH VALUATION
$1,023,906.2
$81.43 - $158.65
Shares Outstanding
FY (Dec)
10,247.26
55,658,996.0
2022A
2023E
2024E
EPS
Q1
(0.37)A
0.28E
-
Q2
(0.20)A
0.42E
-
Q3
0.28A
0.49E
-
Q4
0.03A
0.56E
-
Year
(0.26)A
1.75E
2.90E
Rev. (MM)($)
Year
Growth Rev
BUILDING NEW BUSINESSES IS A CORE COMPETENCE FOR AMZN
Twitch's revenue in 2022 was >10x higher than in 2014, when AMZN purchased it. Like Cloud and
Advertising, Twitch is another data point underscoring AMZN strong competence at building
market-leading businesses in-house.
RELEVANT DISCLOSURES BEGIN ON PAGE 16 OF THIS REPORT.
513,773.0A553,388.0E635,339.0E
9.3%
7.7%
14.8%
April 12, 2023
At a Glance
OUR INVESTMENT THESIS
If AMZN allowed its higher-margin businesses to grow its Op Inc, then we believe that AMZN should be valued more like a Services
company than a Product company. Services revenue and margins (including advertising and subscription) are growing faster and are far
more profitable than AMZN's core eCommerce assets. Services growth implies valuation multiple expansion over time, we believe, so long
as AMZN doesn't invest these profits into lowering prices in its core business.
When calculating the earnings power of the enterprise, we estimate that AMZN invests about $5B each quarter in long-term growth
initiatives where revenue is not captured in the P&L. This understates the normalized economic earnings power of AMZN's operating
businesses, we believe.
BULL CASE ASSUMPTIONS
AMZN's Service Sales continue to report
robust profit growth that drives higher
ROICs and funds new TAM-expanding
adjacencies.
OUR CASE ASSUMPTIONS
We assume that COVID-19 accelerates
consumer adoption of AMZN's Product
sales near term and Services Sales (at
much higher margins) longer term, which
results in strong over-delivery of FCF and
ROIC growth between 2022 and 2024.
To do this, AMZN must allow these high
profit margin businesses to flow their FCF
through to the bottom line, not subsidize
lower prices or higher costs in their core
business.
PRICE PERFORMANCE
BEAR CASE ASSUMPTIONS
Extra COVID-19 costs have no longterm benefit to AMZN and merely offset
the extra revenue recognized during
COVID-19. Competitors catch up with
AMZN, thereby lowering AMZN's ROICs.
An economic recession, rising interest
rates, global hostilities, etc could slow
AMZN's revenue and profit margin
growth.
KEY DATA
Price (USD)
$180.00
Market Cap (MM)
$1,023,906.2
Price (04/11/2023)
$99.92
52-Week Range
$160.00
Shares Outstanding
Avg. Daily Volume
$81.43 - $158.65
10,247.26
55,658,996.0
$140.00
$120.00
$100.00
$60.00
Apr-23
Mar-23
Feb-23
Jan-23
Dec-22
Nov-22
Oct-22
Sep-22
Aug-22
Jul-22
Jun-22
May-22
$80.00
Amazon.com, Inc. / 2
April 12, 2023
WHAT IS TWITCH?
TWITCH 101
Twitch is a digital online site (ie, platform) that aggregates live-streamed video game play, eSports competitions, music/concerts,
entertainment series, and "in real life" video streams, typically created by consumers and influencers. Nearly all of Twitch's content is user
generated content (UGC). While content on Twitch may be viewed via video on demand, the primary use case for Twitch is live-streamed
content. Today, Twitch is the largest streaming platform (by far) for watching others play video games.
TWITCH REVENUE IS UP 10X
Amazon bought Twitch for $970mm in 2014. Since then, AMZN has grown Twitch’s revenue 10x, from $275mm in 2016 to $2.8B in 2022.
Twitch generated approximately $2.8B of revenue in 2022, up 5% from $2.68B in 2021.
Business Model
■
Consumers can pay to subscribe to a specific streamer's channel (prices are typically $5-$25/month), or watch free (with advertising).
They can also "tip" a creator, or buy merchandise using a link the streamer puts in their chat box. Finally, consumers can subscribe to
Amazon Prime Gaming which includes access to many new games and extra streaming content. Gaming is bundled in with Amazon
Prime Video for a fee of $14.99 per month (or $139/year).
■
Twitch makes money primarily through rev shares. That is, Twitch gets about half of all revs earned on its platform, including 50%
of: a) subscription revenue from streamer's channels of $5-$25/month each; b) commissions from game sales; and, c) advertising and
sponsorship revenues. Typically, Twitch generally keeps 50% of revenue and the streamer (ie, content creator) gets 50%, although
high-profile streamers can get up to 70%, we believe.
Source: Nielsen/SuperData, 1Q23.
WHAT IS TWITCH WORTH? DIRECT VALUATION
DIRECT VALUE OF TWITCH
If Twitch were spun out as a separate company, it would be valued at approximately $19B, or 2% of AMZN's total market capitalization
today, we calculate.
If AMZN was willing to spin off 10% of Twitch as a separately-traded public company, we believe it would add a new group of shareholders
to the AMZN story. New Twitch shareholders would be attracted to owing the market leader in live-streaming, very rapid revenue growth,
Amazon.com, Inc. / 3
April 12, 2023
and lower exposure to eCommerce than AMZN, we believe. Many investors we talk to do NOT like the capital intensity and low margins
of AMZN today, but do love platform aggregators as a category, and media businesses specifically.
MATH: DIRECT VALUE CALCULATIONS
The 3 key steps of our "direct value" calculation for Twitch are included below.
1.
We project Twitch revenue of $3.4B in 2023, up 20% y/y. We note that Twitch's average y/y revenue growth rate since 2016 was
57%/year, so our 20% y/y rev growth assumption should prove conservative.
2.
We average the current EV/rev multiples for ATVI and EA and get 5.7x EV/Revs for 2023.
3.
We multiply $3.4B times 5.7x to arrive at a "direct value" of Twitch of $19.4B, or 2% of AMZN's market cap, if Twitch was
separately traded as a public company.
Source: Nielsen/SuperData, Needham & Company estimates.
WHAT IS TWITCH WORTH? INDIRECT VALUATION
INDIRECT VALUE OF TWITCH
In this section we first discuss qualitative ways that Twitch adds value to the AMZN empire. We then attempt to quantify the "indirect
value" of Twitch, which we define as additional value that accrues to AMZN because it owns Twitch.
QUALITATIVE DISCUSSION OF HOW TWITCH ADDS VALUE TO THE AMZN EMPIRE
1. Twitch Creates a Younger Onramp into eCommerce. Lifetime value (LTV) calculations are most sensitive to how long a consumer
stays inside a company's ecosystem. Twitch's audiences are typically about half the age of a typical AMZN eCommerce user. AMZN
should incentivize Twitch users to buy their Xmas and birthday gifts on AMZN. This would entrench AMZN as the "go to" consumer
behavior from a very young age and could result in Twich users being the highest LTV cohort in the AMZN empire over time.
2.
Bundling Synergies. From the beginning, AMZN has been cross-promoting its products with other media businesses under the
AMZN umbrella, including Prime Video, music, advertising, etc. For example, in the past, AMZN has live-streamed early episodes of
an Amazon Prime Video TV series for 24 hours free on Twitch in an attempt to expand awareness and engagement from younger
Amazon.com, Inc. / 4
April 12, 2023
audiences. Similarly, AMZN is now streaming a few games from its NFL and MLB rights to its Twitch audiences to drive incremental
sign ups for Prime Video.
3.
Twitch and AWS Synergies. Twitch connects its game developers to AMZN’s AWS to host their video games on AMZN’s servers. This
ties Twitch game creators more closely to AMZN's ecosystem and drives incremental revs for AWS. We believe the closer integrations
between Twitch and AWS raises the barriers to exit for Twitch's creators.
4.
Power Over Endemic Brands. Video games are built based on fandom and community. Twitch’s homepage ranks games based on
their viewership and popularity, making them discoverable. Twitch believes that up to 25% of revenue for certain new video games
is attributable to Twitch's influencers playing that game, plus Twitch’s front-page ranking system. The most loyal Twitch viewers
(ie, DAUs), are the biggest spenders on video games, according to NewZoo. Endemic advertisers (ie, video games & accessories) that
advertise on Twitch have incentives to buy ads on AMZN as well. Many of these advertisers are additive to AMZN, we believe, which
drives incremental ad revenue growth.
5.
Twitch Expands AMZN’s Unduplicated Reach, which drives advertising and subscription revenue upside, and TAM expansion,
in our view. Twitch's audiences are largely additive to AMZN because Twitch is overwhelmingly male, and its typical user is much
younger than typical AMZN users. Twitch advertisers can access hard-to-reach young men, most of whom do not watch traditional
TV, and they use ad-blocking technologies when they are online. In fact, Twitch's young male demographic is the most valuable to
advertisers, owing to its difficulty to reach. (See details below.)
MATH: INDIRECT VALUE CALCULATIONS
In this section we calculate the "indirect value" of Twitch.
■
■
■
We argue that AMZN should be valued as a services company because its Media asset value ($366B) plus its Cloud asset value
($400B) make up 64% of AMZN's total $1.198T Enterprise Value today. We calculate that AMZN's eCommerce business is being
valued at just 1.1x 2023E revenue, so although 1/2 of AMZN's total rev will come from eCommerce, this revenue stream is valued
at the low end owing to its weak margins and poor profitability, we believe.
Prime Video. Our research demonstrates that, in media businesses, bundling products doubles LTV (ie, total value). Our view
is that 5% of Prime Video and Twitch users will view that bundle as "un-cancelable', by which we mean that churn will fall in
those homes because the Prime Video bundle includes Twitch. We take 5% of 2023E Amazon Prime Video revs of $31.55B to get
$1.578B of revenue upside created by having Twitch in the Prime Video bundle.
Advertising. We know that Twitch broadens the unduplicated reach of AMZN's traditional advertising units, because Twitch's
audience is younger and more male than AMZN's typical audience. This incremental reach attracts new brands and ad agencies,
which AMZN upsells over time into all of its other advertising products. We estimate that Twitch adds 4% new advertisers and
ad revs compared to if AMZN did not own Twitch. As a result, we take AMZN's total 2023E ad revenue of $37.739B times 4%, to
calculate that Twitch adds $1.51B of incremental revenue upside from advertising.
Amazon.com, Inc. / 5
April 12, 2023
■
■
AWS. Twitch's game creators use AWS which "locks" them into AMZN's Cloud product at an earlier age. Because Twitch is
bundled into AWS, we believe it adds 3% more value (ie, lower churn and longer time value) to AWS. By implication, Twitch adds
$2.4B of revenue upside for AWS (ie, $80B of 2023E revs times 3%).
eCommerce. Twitch adds 250mm global MAUs, about 1/2 of them young men, to AMZN's ecosystem and database. We believe
this gives AMZN the option to upsell these young consumers AMZN products in order to increase avg rev/customer and to lower
churn. Larger bundles also give companies greater pricing power over time, our research shows. We assume that by elongating
average life, lowering churn, and raising the pricing power of AMZN's core eCommerce business, we believe Twitch adds 2%
more eCommerce revs to AMZN, or $4.858B (ie, $242B of 2023E revs x 2%).
Our final step is to multiply AMZN's current EV/rev multiple for 2023E to the sum of the revenue upside created by Twitch. As illustrated
in the chart below, we calculate that Twitch adds $13.5B of incremental revenue upside to AMZN. At AMZN's current valuation multiples,
this implies that Twitch represents $25.6B of indirect value upside for AMZN shareholders.
TOP 10 WAYS TWITCH DRIVES UPSIDE VALUE FOR AMZN SHAREHOLDERS
1. SOURCES OF VALUE CREATION: MARKET LEADER
Since 2014, Twitch has dominated video game viewing. Better yet, Twitch's lead over YouTube and FB Gaming has widened over the past 2
years, as shown in the chart below. Twitch dominates video game live-streaming, representing approximately 75% of total viewing time for
the industry in 2022 (NewZoo). Historically AMZN has turned market leading businesses such as Cloud and Advertising into high margin
growth drivers for shareholders. We expect this to happen at Twitch as well, given its dominant market position.
Amazon.com, Inc. / 6
April 12, 2023
2. SOURCES OF VALUE CREATION: TWITCH HAS THE LARGEST TAM
According to comScore's March 2023 data, nearly 50% of mobile gamers are unwilling to pay more than $5/game. Since viewing can be
free on Twitch (supported by ads), this maximizes its reach into the hard-to-find young male audience segment. At the opposite extreme,
43% of gamers are willing to pay up to $60 per video game. Twitch is the largest marketing platform for new video game launches because
consumers (ie, potential purchasers) can watch their favorite influencer play the game first. Twitch's TAM is largest because its business
models are diffuse and its audience aggregation is best-in-class, in our view.
3. SOURCES OF VALUE CREATION: PLATFORM POWER
Platform aggregators have more power and upside value as content fragmentation increases. That is, content has more power the fewer
there are. For Twitch, not only are there many video game creators, but the audience is fickle. They tire of titles. For example, from zero in
2017, Fortnite (2nd from bottom & dark blue) had a huge market share on Twitch for 18 months in 2018 and 1H19, but today it is almost
nothing. As content proliferates and audiences are more fickle (ie, always looking for the next cool game to play), the power of the platform
rises. Discovery becomes the most important thing for content creators, and traffic becomes the deciding factor. By implication, Twitch's
dominant industry leading aggregation platform becomes more valuable over time.
Source: TwitchTracker, 1Q23:
Amazon.com, Inc. / 7
April 12, 2023
4. SOURCES OF VALUE CREATION: 56% MARKET SHARE OF US USERS
Twitch has disclosed that it had 250mm MAUs globally in 2022, of which about 70mm MAUs were in the US. However, eMarketer uses a
much lower number of 34mm Twitch users in the US during 2022. We aren't sure where the disparity lies.
Sticking with the lower eMarketer numbers to make our point #4, eMarketer projects that Twitch will have 35mm US users, or 56% of
total US video game viewers (according to its estimates) during 2023. By implication, Twitch is a "must buy" for any company that sells
products into, or adjacent to, the video game market. Although technically the industry design is an oligopoly, we would argue that Twitch
has a de-facto monopoly in the US by commanding a 56% market share, even using the much lower eMarketer estimates.
From a valuation point of view, its strong market position in the US gives Twitch: a) deep moats; b) strong pricing power to access Twitch's
users; and, c) best in class data about this hard-to-reach audience segment.
5. SOURCES OF VALUE CREATION: TWITCH ADD INCREMENTAL AUDIENCE REACH TO
AMZN
One of the most important ways that Twitch adds value to the AMZN empire is by reaching demographic target audiences that do not
overlap AMZN. As illustrated in the chart below from SimilarWeb, as of 1Q23 68% of Twitch users were male (ie, 32% female) and 60% of
them were under 34 years old. Only 10% of Twitch users overlap the cohort of AMZN Prime customers average age. That is, the average age
of a Prime member was 49 years old, vs 53 years old for non-Prime customers that used AMZN in 2022, according to AMZN. By implication,
Twitch's audiences are primarily additive to AMZN's ecosystem, which drives upside value faster, we believe.
Amazon.com, Inc. / 8
April 12, 2023
Source: SimilarWeb, 1Q23.
6. SOURCES OF VALUE CREATION: 2X MORE CONTENT CREATORS
Twitch had 7.6mm streamers during 2022, down 19% y/y. The total number of streamers on Twitch tripled during COVID because viewers
were locked at home watching millions of more hours than pre-COVID levels (including during school hours). This allowed more creators
to earn a living through rev shares of advertising, tipping, subscriptions, etc. In 2022, streamers returned to school and viewers spent
more time outside, in theaters and restaurants, and in school, rather than on screens. We expect greater competition for time to favor the
largest streamers, and we expect the final number to be closer to 4mm streamers, down almost 50% from 2022 levels. From a competitive
standpoint, Twitch has every important/large content creator because it aggregates 56% of viewers and 75% of viewing hours, and 2x
more streamers than its closest competitor.
Source: TwitchTracker, 1Q23.
7. SOURCES OF VALUE CREATION: LOW CUSTOMER ACQUISITION COSTS
One of the things we like most for AMZN about having Twitch inside its ecosystem is that Twitch's customer acquisition costs are almost
nothing. As illustrated by the chart below, in 1Q23 Twitch got 56% of its visitors from consumers coming directly to its site, plus an
Amazon.com, Inc. / 9
April 12, 2023
additional 37% of its traffic came from organic search. Twitch only got 3.5% of its traffic from referrals plus 3.1% from social channels. By
implication, Twitch is arguably the least expensive way for AMZN to attract to new users into its ecosystem.
Source: SimilarWeb, 1Q23.
8. SOURCES OF VALUE CREATION: GLOBAL REACH & SCALE
Source: Twitch.
Global reach maximizes TAM and creates a deeper moat, we believe. According to Twitch, for the 12 months ended 12/21/22, its global
stats included:
■
252mm monthly active users (MAUs), consisting of 109mm MAUs from EMEA, 70mm MAUs from NA, 41mm MAUs in LatAm
and 33mm MAUs in APAC;
■
Twitch averaged approximately 2.6mm concurrent users globally during 2022;
■
Over 70% of Twitch’s global audience are between the ages of 18 and 34;
■
Over 22 billion hours of content was watched globally during 2022;
■
806mm total hours of unique content were streamed in 2022;
■
53B chat messages were sent;
Amazon.com, Inc. / 10
April 12, 2023
■
11 million people streamed content on Twitch for the first time; and,
■
73% of Twitch users agree that advertising is important because it supports Twitch streamers using the platform
9. SOURCES OF VALUE CREATION: FASTEST GROWING INDUSTRY SEGMENT
According to Perforce data, 40% of experts agree that the fastest growing video game platform over the next 3 years is the very segment
that Twitch dominates- Streaming. More granularly, 40% of video game developers and content creators (ie, experts) project that
Streaming platforms will grow the fastest between 2022 and 2025, followed by 24% that believe Mobile will grow fastest, 18% voted for
the Metaverse, and 10% believe Console games will grow fastest. We agree with the majority that video game streaming will achieve
the fastest user growth and engagement time increases over the next 3 years. We believe that attention is the new "currency" in media
monetization, so time spent growth should lead to revenue growth over this period.
10. SOURCES OF VALUE CREATION: US ADVERTISING UPSIDE
At $290B of digital revenue expected in 2023, the US is the largest advertising market in the world. We are optimistic about Twitch's
near term ability to drive US advertising revenue upside. Typically, advertising revenue has 80% gross margins, so ad revenue growth
would also expand AMZN's reported profit margins, we believe. We think Twitch's stats are unique for marketers, (see below) which
should drive upside to its pricing power (ie, higher CPMs).
Amazon.com, Inc. / 11
April 12, 2023
Twitch's US Stats in 2022
According to Twitch, its user stats in the US during the 12 months ended 12/31/22 included:
1.
7.2mm DAUs, on average;
2.
70mm MAUs, on average;
3.
66% of Twitch’s audience was male (ie, 34% female) in 2022; and,
4.
53% were the most valuable 18-34-year-old demographic, split equally between 18-24 and 25-34 year olds.
5.
418mm gaming hours watched each month, on average;
6.
79mm non-gaming hours watch each month, on average;
7.
Twitch had nearly a 75% share of the total live-streaming market in 2022.
8.
232mm total hours of unique content streamed; and,
9.
13B chat messages sent.
For the next section of this report, we want to thank Mitch Oscar for his patience and insights about Twitch's ad business.
Competitive Advantages that Attract US Advertisers to Twitch
1. Video-focused ads;
2.
All Twitch ads are non-skippable;
3.
Twitch's completion rate averages 97% for ads;
4.
Guaranteed brand safety;
5.
100% viewability and 0% fraud are guaranteed by DoubleVerify.
Top 5 US Ad Products
1. Traditional Video ads include a 15 or 30-second pre-roll ad, or a 30-60 second mid-roll video ad.
2.
First Impression Takeover (FITO) ad guarantee that a brand is the first ad impression that Twitch users see.
3.
Homepage Headliner guarantees that a brand will be the first brand users see on Twitch's homepage.
4.
Stream Display ads integration the marketer’s message into live-streamed content.
5.
Live Entertainment partnerships can be any custom deal in one of the four content categories (video games, music, sports, or lifestyle
&entertainment) that Twitter aggregates.
6.
Custom Sponsorships are customized marketing solutions (ie, "Other").
Amazon.com, Inc. / 12
April 12, 2023
Go to Market US Audience Segments
Twitch offers 3 audience segments to chose from, of which 1 is AMZN (ie, a valuable up-sell opportunity).
1.
Twitch Audiences are audience segments based on the location and frequency of content consumption for any of the following
categories; Total Twitch Gamers; Top Game Viewers; Mobile Game Viewers; PC Game Viewers; Console Game Viewers; New Game
Viewers; Esports Viewers; Twitch Sports Viewers; and Non-Gaming viewers.
2.
Contextual Targeting is based on reaching audiences while they view contextually similar content such as music, chats, sports,
cooking, genres (FPS, RPG) and/or locations.
3.
Amazon Audiences are audiences based on Amazon’s first party data about which shoppers are streaming, purchasing or searching
on Amazon in real time.
REPORT SUMMARY & CONCLUSIONS
Twitch adds incremental value to AMZN's ecosystem, in our view. We believe the Top 10 upside value drivers suggest that Twitch will add
more value to AMZN in 3 years than it does today. That is, Twitch's value is growing faster than AMZN's overall value, we believe.
Twitch creates value for AMZN in 2 ways- both directly and indirectly. About $19B is Twitch's value is "direct" value (ie, if all or a portion
of Twitch was separately traded) plus $25.6B of its value is "indirect" value (ie, the value Twitch creates for other AMZN businesses). In
total, we believe Twitch is worth approximately $45B, or 4% of AMZN's total market cap.
Amazon.com, Inc. / 13
April 12, 2023
VALUATION (PRICE TARGET: $120.00)
■
Our AMZN price target is based on a DCF valuation. We use a WACC of 8% and a long-term nominal growth rate of 2%. The standard
DCF is widely used on Wall Street because it is rigorous bottom-up valuation of the enterprise based on discounting its long-term
cash flows and removing the impact of non-cash accounting conventions.
■
Our AMZN price target embeds a 10-year growth rate of 12.7% annually beginning in FY23, and represents an 13.1x multiple of our
forward year (FY24E) EBITDA estimate.
POTENTIAL UPSIDE DRIVERS
AMZN's investment positives include an enormous TAM, consumer shift toward eCommerce thanks to COVID, hidden asset values in
AMZN's 100%-owned media assets such as Twitch, Advertising business, and Prime Video, a strong balance sheet, and a best-in-class
consumer brand.
RISKS TO TARGET
AMZN
Risks to our AMZN price target include low ROICs despite its industry-leading market position in eCommerce, falling margins, lack of
pricing power, inflation, rising interest rates, regulatory risks, competition, and economic and/or consumer demand weakness.
Rating and Price Target History for: Amazon.com, Inc. (AMZN) as of 04-11-2023
06/16/20
I:BUY:$3200
07/31/20
BUY:$3700
04/30/21
BUY:$4150
04/29/22
BUY:$3500
07/29/22
BUY:$175
10/28/22
BUY:$120
200
180
160
140
120
100
Q1
Q2
Q3
2021
Q1
Q2
Q3
2022
Q1
Q2
Q3
2023
80
Q1
Created by: BlueMatrix
Rating and Price Target History for: DoubleVerify Holdings, Inc. (DV) as of 04-11-2023
05/17/21
I:BUY:$41
01/21/22
BUY:$30
03/02/23
BUY:$35
50
45
40
35
30
25
20
Q1
Q2
Q3
2021
Q1
Q2
Q3
2022
Q1
Q2
Q3
2023
15
Q1
Created by: BlueMatrix
Amazon.com, Inc. / 14
April 12, 2023
Rating and Price Target History for: Alphabet Inc. Class A (GOOGL) as of 04-11-2023
02/03/21
BUY:$125
04/28/21
BUY:$135
07/28/21
BUY:$160
12/21/22
BUY:$115
160
140
120
100
80
60
Q1
Q2
Q3
2021
Q1
Q2
Q3
2022
Q1
Q2
Q3
2023
40
Q1
Created by: BlueMatrix
Rating and Price Target History for: Meta Platforms Inc. (META) as of 04-11-2023
07/11/22
UP:NA
400
350
300
250
200
150
100
Q1
Q2
Q3
2021
Q1
Q2
Q3
2022
Q1
Q2
Q3
2023
50
Q1
Created by: BlueMatrix
Rating and Price Target History for: comscore, Inc. (SCOR) as of 04-11-2023
08/10/21
BUY:$4.5
05/11/22
BUY:$2.5
6
5
4
3
2
1
Q1
Q2
Q3
2021
Q1
Q2
Q3
2022
Q1
Q2
Q3
2023
0
Q1
Created by: BlueMatrix
Amazon.com, Inc. / 15
April 12, 2023
ANALYST CERTIFICATION
I, Laura Martin hereby certify that the views expressed in this research report accurately reflect my personal views about the subject company (ies) and its (their) securities.
I, also certify that I, have not been, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.
RATINGS DISTRIBUTIONS FOR NEEDHAM & COMPANY, LLC
% of companies under coverage
with this rating
% for which investment banking services
have been provided for in the past 12 months
Strong Buy
1
0
Buy
76
8
Hold
22
0
Underperform
<1
0
0
0
<1
0
Rating Suspended
Restricted
Needham & Company, LLC employs a rating system based on the following:
Strong Buy: A security, which at the time the rating is instituted, we expect to outperform the average total return of the broader market as well as the securities in the
analyst’s coverage universe over the next 12 months.
Buy: A security, which at the time the rating is instituted, we expect to outperform the average total return of the broader market over the next 12 months.
Hold: A security, which at the time the rating is instituted, we expect to perform approximately in line with the average total return of the broader market over the next
12 months.
Underperform: A security, which at the time the rating is instituted, we expect to underperform the average total return of the broader market over the next 12 months.
Rating Suspended: We have suspended the rating and/or price target, if any, for this security, because there is not a sufficient fundamental basis for determining a rating or
price target. The previous rating and price target, if any, are no longer in effect and should not be relied upon. This rating also includes the previous designation of "Under
Review".
Restricted: Needham & Company, LLC policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation,
during the course of Needham & Company, LLC’s engagement in an investment banking transaction and in certain other circumstances.
For disclosure purposes, in accordance with FINRA requirements, please note that our Strong Buy and Buy ratings most closely correspond to a "Buy" recommendation.
When combined, 77% of companies under coverage would have a "Buy" rating and 8% have had investment banking services provided within the past 12 months. Hold
ratings mostly correspond to a "Hold/Neutral" recommendation; while our Underperform rating closely corresponds to the "Sell" recommendation required by the FINRA.
Our rating system attempts to incorporate industry, company and/or overall market risk and volatility. Consequently, at any given point in time, our investment rating on
a security and its implied price appreciation may not correspond to the stated 12-month price target. For valuation methods used to determine our price targets and risks
related to our price targets, please contact your Needham & Company, LLC salesperson for a copy of the most recent research report.
Price charts and rating histories for companies under coverage and discussed in this report are available at http://www.needhamco.com/. You may also request this
information by writing to: Needham & Company, LLC, Attn: Compliance/Research, 250 Park Ave., New York, NY 10177
By issuing this research report, each Needham & Company, LLC analyst and associate whose name appears within this report hereby certifies that (i) the recommendations
and opinions expressed in the research report accurately reflect the research analyst’s and associate’s personal views about any and all of the subject securities or issuers
discussed herein and (ii) no part of the research analyst’s or associate’s compensation was, is or will be directly or indirectly related to the specific recommendations or
views expressed by the research analyst or associate in the research report.
DISCLOSURES
The research analyst and research associate have received compensation based upon various factors, including quality of research, investor client feedback, and the Firm's
overall revenues, which includes investment banking revenues for the following: Amazon.com, Inc., DoubleVerify Holdings, Inc., Alphabet Inc. Class A, Meta Platforms Inc.
and comscore, Inc.
The Firm, at the time of publication, makes a market in the subject companies Amazon.com, Inc., Alphabet Inc. Class A, Meta Platforms Inc. and comscore, Inc. .
This report is for informational purposes only and does not constitute a solicitation or an offer to buy or sell any securities mentioned herein. Information contained in this report has been obtained
from sources believed to be reliable, but Needham & Company, LLC makes no representation as to its accuracy or completeness, except with respect to the Disclosure Section of the report. Any
opinions expressed herein reflect our judgment as of the date of the materials and are subject to change without notice. The securities discussed in this report may not be suitable for all investors
and are not intended as recommendations of particular securities, financial instruments or strategies to particular clients. Investors must make their own investment decisions based on their
financial situations and investment objectives. The value of income from your investment may vary because of changes in interest rates, changes in the financial and operational conditions of the
companies and other factors. Investors should be aware that the market price of securities discussed in this report may be volatile. Due to industry, company and overall market risk and volatility, at
the securities current price, our investment rating may not correspond to the stated price target. Additional information regarding the securities mentioned in this report is available upon request.
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