Should Amazon.com, Inc. (AMZN) be Concerned with Indian Market After Snapdeal Raises $200 Million?

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Amazon.com, Inc. (NASDAQ:AMZN) has shown that they have an obvious goal of world dominance when it comes to selling goods and services. With speculation that the company will soon launch their own delivery company, one that would allow them to challenge companies like Alibaba as well as UPS, FedEX and the USPS, there is no doubt that the company has some major plans.

While the United States represents a huge market for Amazon.com, Inc. (NASDAQ:AMZN) both because of population and GDP per capita, the company also has begun focusing on developing nations with large populations, such as India. India represents a huge market, one that will continue to grow, so it is of utmost importance that they try and conquer online retail sales within the country. However, things may have just gotten a bit trickier as a website called Snapdeal has just raised an astounding $200 million to take on the online Indian retail business. The company is now valued at around $7 billion.

“We see these investments as a continuing endorsement of Snapdeal’s strategy to build India’s most reliable and frictionless commerce ecosystem,” said Anup Vikal, chief financial officer at Jasper Infotech, in a statement. “We continue to make targeted investments in building internal and external capabilities that will enable us to consistently deliver optimal experience for the millions of buyers and sellers who transact daily on Snapdeal.”

The question is, will this hurt Amazon in the country of India? Only time will tell. The stock increased 0.65% or $3.26 on February 12, hitting $507.08. About 5.38 million shares traded hands. AMZN has risen 14.33% since July 10, 2015 and is uptrending. It has outperformed the S&P500 by 23.81%.

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 43.46% above today’s ($507.08) 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 purchases, and 1 insider sale for a total of $3.16 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 $240.30 billion. The Firm sells a range of services and products through its Websites. It has 408.89 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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