Does Amazon.com, Inc. (AMZN) Have a Future as a Brick and Mortar Business? UC Campus Location Will Test That Idea

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Amazon.com, Inc. (NASDAQ:AMZN) has made quite the name for themselves as an online retailer. One of the primary reasons for their great success is their ability to quickly deliver products to their customers in a matter of 1-2 days. What if the company decided to take a step back and do things the old-fashion way? Could Amazon have a future as a brick and mortar company as well?

Certainly we aren’t talking about opening stores all around the world in the typical sense of the word, but what if they allowed for customers to pick up their orders at the nearest shipping centers? This would save both time and money for the company, while allowing those who need a product within hours to go get it right away.

Amazon.com, Inc. (NASDAQ:AMZN) has been testing this idea to some extent, most recently by opening up an Amazon.com Pickup Store near the University of Cincinnati campus. This pick up location joins other University pickup locations which include Purdue and UMass. Amazon says that they are meant for students for the most part, but as we all know Amazon continuously has been adding new shipping locations all over the globe, so why not turn these shipping locations into shipping/pickup points?

It should be interesting to see if Amazon (AMZN) reports on how successful their pickup stores perform, and it wouldn’t surprise me one bit if we see this expanded on a national and perhaps international level in the future.

The stock is up 0.69% or $4.2 following the news, hitting $612.14 per share. About 4.30 million shares traded hands. AMZN has risen 41.13% since June 4, 2015 and is uptrending. It has outperformed the S&P500 by 46.98%.

From a total of 26 analysts covering Amazon.com (NASDAQ:AMZN) stock, 22 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 85% of the ratings are positive. The highest target price is $850 while the lowest target price is $525. The mean of all analyst targets is $726.35 which is 18.66% above today’s ($612.14) stock price. Amazon.com was the topic of 61 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Monness Crespi & Hardt downgraded shares on January 4 to a “Neutral” rating. Barclays Capital maintained shares with a”Overweight” rating and a $850 target share price in their report from a December 1. Macquarie Research maintained AMZN stock in a recent report from December 22 with a “Outperform” rating. Canaccord Genuity maintained the rating on October 23. Canaccord Genuity has a “Hold” rating and a $600 price target on shares. Finally, Nomura maintained the stock with a “Buy” rating in a report they issued on a December 9.

The institutional sentiment increased to 1.49 in Q2 2015. It’s up 0.37, from 1.12 in 2015Q2. The ratio improved, as 67 funds sold all their Amazon.com, Inc. shares they owned while 376 reduced their positions. 166 funds bought stakes while 493 increased their total positions. Institutions now own 325.29 million shares which is 4.94% more than the previous share count of 309.99 million in 2015Q2.

Huntington Steele Llc holds 23.61% of its total portfolio in Amazon.com, Inc., equating to 103,872 shares. Tiger Global Management Llc owns 3.19 million shares representing 20.13% of their total US portfolio. Moreover, Tybourne Capital Management Hk Ltd has 18.16% of their total portfolio invested in the company, equating to 504,001 shares. The Washington-based Brighton Jones Llc has a total of 17.93% of their portfolio invested in the stock. Telemark Asset Management Llc, a Massachusetts-based fund reported 100,000 shares owned.

Since May 4, 2015, the stock had 0 buys, and 11 selling transactions for a total of $27.04 million in net activity. Stonesifer Patricia Q sold 6,250 shares worth $3.16M. Wilke Jeffrey A sold 5,908 shares worth $3.16 million. Reynolds Shelley sold 720 shares worth $381,752. Olsavsky Brian T sold 2,098 shares worth $1.11M. The insider Zapolsky David sold 2,322 shares worth $1.23M.

Amazon.com, Inc. is an e-commerce company. The company has a market cap of $283.98 billion. The Firm sells a range of services and products through its Websites. It has 887.98 P/E ratio. The Company’s products are offered through consumer-facing Websites, which include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers.

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