Nasdaq AMZN Amazon
3 Ways Around an Extravagant Stock Price
My 3 Highest-Conviction Stocks This Summer
Morrisons shares leap after takeover approach rebuffed
German union calls for Amazon workers to strike on 'Prime Day'
CD&R set to continue pursuit of UK's Morrisons, FT says
Will The Gains Continue For RH Stock?
Is Amazon Stock a Buy Ahead of Prime Day? This Is What You Need to Know
Amazon’s (AMZN) Prime Day will kick off early this year, taking place at the start of the week, on June 21-22 (Monday and Tuesday), instead of in July (apart from last year’s pandemic-dictated October event).
The shopping festivities will include over 2 million deals for the 200 million strong Prime subscribers across the globe. However, non-Prime members can also enjoy the Prime Day Show event streamed on Amazon Prime Video. This three-episode event remains available for 30 days with segments dedicated to Billie Eilish, H.E.R. and Kid Cudi. Making the most of Amazon’s interplay between ecommerce and media, to mark the event, Billie Eilish also launched merchandise exclusively on Amazon.
While millions across the globe are set to participate in the promotional shopping extravaganza, the event coincides with more scrutiny of Big Tech.
Last week, the House Judiciary Committee’s Antitrust Subcommittee drafted five bills intended to curtail the influence of Amazon and its fellow tech giants Alphabet, Facebook and Apple.
While segments of each bill could have consequences for all four companies, Monness’ Brain White believes “some bills appear more consequential than others.”
“In our view,” the 5-star analyst said, “The ‘Ending Platform Monopolies Act’ appears highly relevant to Amazon. The act is designed, ‘To Promote competition and economic opportunity in digital markets by eliminating the conflicts of interest that arise from dominant online platforms’ concurrent ownership or control of an online platform and certain other businesses.’ Also, the ‘Platform Competition and Opportunity Act’ and the ‘American Choice and Innovation Online Act’ appear pertinent to Amazon.”
How these will affect the company in the long-term is unknown, but for now, White believes Amazon stock’s middling performance of late is no reflection of its real-world strength. After the pandemic-driven “surging demand,” White believes the ecommerce leader is “uniquely positioned to exit this crisis as one of the biggest beneficiaries of accelerated digital transformation.”
Accordingly, White has a Buy rating on Amazon shares, backed by a $4,500 price target. Investors could be sitting on gains of 29%, should White’s thesis prove correct. (To watch White’s track record, click here)
White thinks Amazon stock is due to break out of the past few months’ range-bound display, and so do the rest of Wall Street’s analyst corps. The stock has a Strong Buy consensus rating based on a unanimous 32 Buys, while the $4,297.58 average price target indicates gains of 23% could be in store over the following months. (See Amazon stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
5 Stocks for Growth Investors Who Want to Diversify
3 Companies to Buy in the Next Market Crash
3 Investing Lessons From Dad Jokes
3 Growth Stocks That Could Be Better Investments Than AMC Stock Right Now
2 Reasons to Buy This E-Commerce Growth Stock
UK's Morrisons rejects $7.6 bln takeover proposal from CD&R
This Apple Supplier Is Generating Bigger Gains Than Apple
1 Apparel Stock Growing Sales by 65% This Year
3 Top Stocks on Sale for Father's Day
You Can't Invest in Blue Origin. Consider These 3 Space Stocks Instead
A Stock Market Crash Is Coming: 5 High-Conviction Stocks to Buy Hand Over Fist When It Happens
Amazon: A Fundamentally Sound Undervalued Giant
Following 2020’s outsized gains, the 2021 stock market has been less of a thrill for Amazon (AMZN) stock. It has been a choppy performance so far, and Amazon stock has dilly dallied in both directions without a conclusive move either way.
In fact, the depressed performance, says Jefferies’ Brett Thill means Amazon stock is now trading at a historically low EV/EBITDA multiple. This presents opportunity, as given the pandemic-led changes in consumer habits which have driven “permanent increase” in e-commerce adoption, Thill argues the stock is underperforming despite a fundamental outlook “that is arguably better than ever.”
It’s a conclusion reached following a recent Jefferies survey on consumers’ spending habits. The survey found that 60% of those questioned were shopping more online since the pandemic’s onset. Even after the easing of restrictions, 63% among those have ramped up their online spending, while only 15% have reduced their online shopping habits.
“Amazon is a clear standout,” the 5-star analyst noted, “With 77% of consumers continuing to spend more on the site since restrictions were lifted, followed by 26% at Walmart, 15% at Target, 15% at Chewy, 10% at eBay, and 9% at Etsy.”
Thill thinks Amazon Prime is behind much of the increased spending. Since Covid hit, 9% of US adults have joined the Prime club, and even when the pandemic fully retreats, ~80% of those expect to keep the service.
But it is not only Amazon’s e-commerce prospects which are looking strong. The company’s highest margin businesses “continue to thrive.”
“AWS and Advertising experienced accelerating Sales growth in 1Q,” said Thill, “Helping AMZN deliver its 4th consecutive quarter of upside to consensus Operating Income.”
AWS - as the “de facto” cloud infrastructure provider - will continue to benefit from the shift to remote working, while for advertising, Thill anticipates “higher post-pandemic share in consumer staples for AMZN driving increased penetration of $1T in combined CPG trade/advertising spend.”
Taking all these factors into consideration, Thill adds AMZN to Jefferies’ Franchise Picks List. The analyst rates the stock a Buy along with a $4,200 price target. The implication for investors? Upside of 20%. (To watch Thill’s track record, click here)
Amazon is one of a select club with a large yet unanimous analyst following. The stock has a Strong Buy consensus rating based on Buys only – 31, in total. The average price target is a touch higher than Thill’s, and at $4,297.58, indicates one-year gains of 23%. (See Amazon stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.