Amazon (NASDAQ:AMZN) the e-Commerce Giant Marked Another Milestone

Amazon (NASDAQ:AMZN) the e-Commerce Giant Marked Another Milestone

Amazon (NASDAQ:AMZN) the e-Commerce Giant Marked Another Milestone

$AMZN, $WMT, $TGT, $MSFT

Amazon.com (NASDAQ:AMZN), the e-Commerce giant that is changing the retail marketplace has marked another milestone.

Amazon stock hit 1,001.20 shortly after Tuesday’s opening bell, up about 40% from a year ago and more than 2X the 15% gainer of the S&P 500 Index in the same frame.

Investors are thinking about how much further Amazon can grow as it tries to replicate its US success abroad.

The 1,000 share price also puts Amazon’s market value at about $478-B, 2X that of rival Wal-Mart (NYSE:WMT) and more than 15X the size of Target (NYSE:TGT).

The shares will likely push even higher since Amazon is growing so quickly in massive global industries that show no signs of slowing, as shopping habits change and businesses rethink how they deploy technology, said an analyst at Cowen, who recently upped his Amazon price target to 1,125 a share.

Amazon has come a long way since its start in Y 1995, when it mostly sold books. The Seattle company now sells just about anything, from groceries to small appliances, and has been blamed for taking business away from department stores, supermarkets and clothing retailers.

Amazon’s ventures far beyond online retail, from cloud computing to movie making, are raising questions among corporate strategy experts about its focus.

The company wowed Wall Street recently with a 23% jump in sales, pushing its shares to an all-time high. But there are concerns that if blockbuster growth stops, investors may come to regard the company more like a conglomerate stock, usually worth less than the sum of its pieces.

Investors also put more value in Amazon’s web traffic and delivery network than they do in Wal-Mart’s vast store presence because online spending will grow more than 4X faster than overall retail spending this year as shoppers continue to shift from stores to websites.

The world’s largest online retailer is dominating e-Commerce with its $99-a-year Amazon Prime subscription, which includes delivery discounts, music and video streaming and photo storage that keep shoppers engaged with the website.

Amazon had 80-M Prime subscribers in the US as of 31 March, an increase of 38% from a year earlier, according to Consumer Intelligence Research Partners.

Prime memberships help lock in loyalty, which is critical as competitors such as Wal-Mart enhance their e-Commerce offerings to slow Amazon’s momentum.

Amazon has been tackling retail one category at a time, disrupting bookstores and electronics stores first and more recently pushing into apparel and groceries. Its rise has coincided with the decline of prominent retail chains such as Macy’s Inc. (NYSE:M) and Sears Holdings Corp., which have shuttered stores and laid off workers in response to declining sales.

Amazon’s rise has made its founding CEO Jeff Bezos the world’s 2nd wealthiest person, behind only Microsoft Corp. (NASDAQ:MSFT) co-Founder Bill Gates, according to the Billionaires Index.

“Consumers always want things at lower prices delivered faster. Amazon uses data better than anyone to achieve those goals for everything it sells. They have a chance to be the most dominant company in the world,” said on shareholder.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:AMZN 997.06 30 May 2017 1.28 996.51 1001.2 996.1 1,180,043
HeffX-LTN Analysis for AMZN: Overall Short Intermediate Long
Very Bullish (0.64) Bullish (0.48) Very Bullish (0.81) Very Bullish (0.62)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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