Analysts from Baird and Wedbush provided their insights on e-commerce giant, Inc. (NASDAQ:AMZN) and Zynga Inc (NASDAQ:ZNGA), following an air-cargo contract and Q1 earnings, respectively. Both analysts believe near term initiatives represent long-term catalyst for each company., Inc.

Top analyst Colin Sebastian of Baird commented on Amazon after the company announced another air cargo partnership with Atlas Air Worldwide, leasing 20 767-300 cargo aircraft for 10 years, in addition to its existing fleet. As part of the agreement, the company may acquire up to 30% of the company. Amazon intends to use the plain for express package delivery to prime membership starting this year will full operation by 2018. The analyst states, We continue to believe that Amazon is in the early stages of building out larger-scale transportation and logistics operations to add capacity beyond existing providers, to lower logistics expenses, and ultimately, to offer specialized 3PL services to third parties.”

The analyst believes one of Amazon’s goals is to “alleviate some of the stresses” on its logistics network given that other companies such as UPS and FedEx are struggling to keep up with Prime’s growth. The analyst believes that more control over its logistics is a “natural step” for the company and “are almost as necessity to continue the rapid expansion of Prime and Prime Now.”

Sebastian notes that while investments in air cargo could have a minimal negative near term impact, they would provide long term margin benefit. He explains “Given that Amazon spent ~$11.5B on shipping in 2015 (more than ‘Technology’ opex!), even a slight improvement in per-unit economics could provide a notable boost to the company’s margin profile.” The analyst also mentions that in the future, the company may offer transportation and logistics services to third parties. Although this move is regarded as skeptical by some, he points to Amazon’s ambitions to continue expanding into new markets as well as a $400 billion + market opportunity in logistics, “of which even a small slice could prove material for Amazon.”

The analyst maintains an Outperform rating on the stock with a $780 price target, crediting “Amazon’s long-term market opportunities, near-term positive e-commerce trends, and [his] positive Internet Platform thesis.” Colin Sebastian is ranked #27 out of 3,901 analysts on TipRanks. He has 69% success rate recommending stocks with an average return of 15.5% per recommendation.

According to TipRanks, out of all the analysts who have rated the company in the past 3 months, 90% gave a Buy rating while 10% remain on the sidelines. The average 12-month price target for the stock is $794.97, marking a 19% upside from current levels.

Zynga Inc

Wedbush analyst Michael Pachter weighed in on Zynga after the company released its Q1:16 earnings, beating expectations. The analyst credits this earning beat to “spending discipline and the leverage in its business model.” The analyst elaborates, believing its enterprise value of $650 million bodes well for the company with less than 1x expected bookings for 2016 and 2017. However, he predicts 3x forward bookings resulting in a $4.25 12-month price target (shares are currently $2.30). He states, “We think the risk-reward is quite favorable, and that extremely patient investors will be handsomely rewarded when (or if) both ‘elephant’ games launch later this year.”

In the earnings release, new CEO Frank Gibeau commented on a turnaround after the company suffered a rough few quarters. He stated, “Zynga has all the ingredients it needs for a successful turnaround. My priority is to bring our founding social gaming vision to life in our games and lead our teams to deliver high quality experiences for players on time and profitably.” As a result of the CEO’s confidence, clarity, and successful track record of shipping games on time, the analyst believes the company is on track to meet its 10 games per year goal. The analyst also has positive long term expectations. He stats, “We expect the pace of releases to pick up and become more consistent in future years.” The analyst also had a hopeful tone regarding confirmed game launches following delays. Pachter notes, “We expect other player-vs.-player games to launch in future years, and believe that these games are the key to dramatic bookings and profit growth in 2017 and beyond.”

The analyst reiterates his Outperform rating and $4.25 price target.

According to TipRanks, out of all the analysts who have rated the company in the past 3 months, 45% gave a Buy rating, 11% gave a Sell rating, and 44% remain on the sidelines. The average 12-month price target for the stock is $3.41, marking a 33% upside from current levels.