While Amazon.com, Inc. (NASDAQ:AMZN) expands on all fronts, it’s the open source decentralized power of Bitcoin and a new Bitcoin-related marketplace, OpenBazaar.org, which may have long term negative implications on the company’s growth.
While Bitcoin is not yet mainstream, many analysts and investors see that day coming sooner rather than later, and if new applications for the cryptocurrency emerge which can drive use cases, then Bitcoin’s future looks incredibly bright. OpenBazaar is a decentralized ecommerce platform which looks to compete with the Amazons and Ebays of the world. The only difference is that the platform is non-profit and completely free to use. Whereas Amazon.com, Inc. (NASDAQ:AMZN) may charge up to 15% for sellers to used their platform, and ebay, approxomately 9-10%, Openbazaar has no seller fees. This means that products may be sold 9-15% cheaper and the sellers will make just as much money in the end.
With OpenBazaar expected to launch within months, it will be interesting to see how much traction it gets out of the gate. While Amazon.com, Inc. (NASDAQ:AMZN) certainly won’t lose business to this new platform any time soon, the future implications of OpenBazaar could be staggering.
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 23.20%.
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 44.81% above today’s ($507.08) 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 insider purchases, and 1 insider sale for a total of $3.16 million in net activity. Stonesifer Patricia Q sold 6,250 shares worth $3.16 million. 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.