So much for Amazon.com, Inc. (NASDAQ:AMZN) having limited growth potential. We have now learned that the company has its sights set, not only on competing with China’s largest ecommerce site Alibaba, but also some of the world’s most popular shipping companies such as UPS and FedEx. That’s right, Amazon.com may have just found a way to take aim at limitless potential.
Called “Supply Chain by Amazon” (SCBA), a launch later this year apparently has been set. SCBA will challenge Alibaba with a global e-commerce business that will cross virtually any borders in the world, and offer super fast shipping at minimal or possibly no costs. Imagine purchasing a computer from China, and having it shipped to your home within 3 days for just a couple extra bucks. This will be possible if Amazon’s business model works.
Additionally Amazon could steal away some of Alibaba’s marketshare, if they can offer more affordable, quicker shipping options than what is currently available. Amazon is a trusted name, and they have made their model work in the U.S and much of Europe. A global marketplace like none other could thrust the e-commere site into the next generation of globalization.
The stock is down 1.45% or $7.1 following the news, hitting $481 per share. Approximately 5.14 million shares traded hands. AMZN shares have risen 11.94% since July 6, 2015 and are currently uptrending. It has outperformed the S&P500 by 21.41%.
From a total of 30 analysts covering Amazon.com (NASDAQ:AMZN) stock, 26 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 87% 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 $727.45 which is 51.24% above today’s ($481) stock price. Amazon.com was the topic of 79 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. UBS maintained shares on January 29 with a “Buy” rating. Credit Suisse maintained shares with a”Outperform” rating and a $800 target share price in their report from a January 19. Mizuho maintained AMZN stock in a recent report from January 29 with a “Buy” rating. Susquehanna initiated the rating on January 18. Susquehanna has a “Positive” rating and a $900 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Outperform” rating in a report they issued on a January 29.
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 insider buys, and 9 sales for a total of $25.00 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 $1.23 million.
Amazon.com, Inc. is an e-commerce company. The company has a market cap of $220.15 billion. The Firm sells a range of services and products through its Websites. It has 387.86 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.