Amazon.com, Inc. (AMZN) Enters Ocean Frieght Business – May Sell Products Direct From China

Share

Whether you are for or against importing products from China, Amazon.com’s (NASDAQ:AMZN) move this week is sure to at least bring prices down somewhat. The ecommerce giant’s Chinese branch, Amazon China, has just registered for ocean freight services to the United States. What this ultimately means is that the company could very well begin selling space on freight ships to Chinese factories directly.

“This is a smart and long overdue move for the company, explained Ryan Petersen, chief executive of Flexport . By offering ocean freight services, Fulfillment by Amazon (FBA) will make it easier for its customers to move goods into the company’s logistics network,”

The ocean freight market is worth approximately $350 billion annually, making this somewhat of a no brainer for Amazon.com, Inc. (NASDAQ:AMZN). It will be interesting to see how they play their cards though, as it is very possible they will drive away sellers from the US, while Chinese factories are able to undercut them significantly on pricing. Alternately, Amazon could begin competing with Alibaba, only allowing bulk sales of products from China via their freight services.

The stock decreased 3.89% or $23.09 during the last trading session, hitting $569.91. Approximately 6,457 shares traded hands. AMZN shares have risen 32.62% since June 12, 2015 and are currently uptrending. It has outperformed the S&P500 by 41.49%.

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 $900.0 while the lowest target price is $525. The mean of all analyst targets is $734.31 which is 28.85% above today’s ($569.91) stock price. Amazon.com was the topic of 64 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on January 15 with a “Positive” rating. M Partners initiated shares with a”Buy” rating and a $800.0 target share price in their report from a December 15. Monness Crespi & Hardt downgraded AMZN stock in a recent report from January 4 to a “Neutral” rating. Barclays Capital maintained the rating on December 1. Barclays Capital has a “Overweight” rating and a $850 price target on shares. Finally, Macquarie Research maintained the stock with a “Outperform” rating in a report they issued on a December 22.

The institutional sentiment increased to 1.49 in Q2 2015. It’s up 0.37, from 1.12 in 2015Q2. The ratio increased, 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 insider sales 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 $1.11 million. The insider Zapolsky David sold 2,322 shares worth $1.23 million.

Amazon.com, Inc. is an e-commerce company. The company has a market cap of $267.28 billion. The Firm sells a range of services and products through its Websites. It has 826.73 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.

COMMENTS: