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Online retailer Amazon.com, Inc (AMZN) may surpass Google's top-line growth in 2010, an analyst with Benchmark Capital said.
Analyst Frederick Moran, who raised the price target on the stock to $148 from $135, said Amazon stands poised to post a 34 percent top-line gain in 2010 compared to last year.
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Wall Street is expecting 35 percent revenue growth for Amazon at $33.19 billion, and 21 percent top-line growth for Google at $21.16 billion in 2010.
The brokerage' earnings estimate for 2010 stands at $2.70 a share on revenue of $32.8 billion.
"Despite recent moderation in traditional retail sales and uncertainty surrounding consumer spending in 2H10, Amazon should benefit from further strength in the online channel," analyst Frederick Moran said in a note to clients.
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Amazon's revenue growth rate has reaccelerated despite high unemployment and cash-strapped consumers. Amazon has outpaced the ecommerce market, retailers and even Internet leaders like Google meaningfully.
In addition, the recent data on e-retail spending by comScore also favors Amazon.
comScore data showed that online retail spending in U.S. grew 9 percent in the second quarter to $32.9 billion.
However, comScore chairman Gian Fulgoni said "We remain cautiously optimistic heading into the second half of the year, but we will be keeping a close eye on unemployment rates, which along with potential uncertainty in the stock market could limit growth in e-commerce spending in the near term."
Nevertheless, analyst Moran, who has a "buy" rating on the stock, said Amazon has experienced a sales shift toward its international operations and increasing product offerings and new market penetration may offset lingering economic challenges.
"We believe the company now stands positioned to see a breakout recovery in its financials, leading to accelerating EPS growth in 2010," Moran said.
Shares of Amazon closed Tuesday's trading at $128.86 on Nasdaq.
