Rumors are abuzz that Amazon.com, Inc. (NASDAQ:AMZN) could be announcing a unified communications as a service (UCaaS) as well as a team collaboration/video service (VCaaS) at this week’s Amazon Web Services (AWS) re:Invent partner conference in Las Vegas. Subsequently, William Blair analyst Dmitry Netis reiterates an Outperform rating on AMZN without listing a price target.
News reports like Ingrid Lunden’s November 23rd TechCrunch article, “Amazon acquired patents, employees from Biba, reportedly plans new video chat service” as well as Dave Michels’ November 27th TalkingPointz article, “Will AmazonReInvent UCaas?” are pondering the online auction and e-commerce leader’s prospective first steps into these markets.
Netis believes, “The move, while perfectly logical for the No. 1 public cloud operator in the world, would suggest Amazon (AMZN $750.57; Outperform) aims to leapfrog Microsoft (MSFT $60.26; Outperform), and Google (GOOG $758.04; Outperform), which respectively offer UCaaS functionality via the Skype for Business suite of services and G Suite with various nonexclusive cloud PBX partnerships from 8×8, Vonage, BroadSoft, DialPad, and Fuze.”
“We discussed in our note, ‘The State of the Industry (2016 Edition)— The Battle for Third Place’ from March 21 of this year, that it is a natural progression for Amazon to emerge as a wildcard disruptor in the space, though we believed it would have to happen through inorganic efforts (buying one of the pure-plays in the UCaaS space) or via partnership efforts (by outsourcing a best-of-breed, white-label VoIP engine from BroadSoft).”
As usual, we like to include the analyst’s track record to give a perspective on the effect it has on stock performance. According to TipRanks, five-star analyst Dmitry Netis is ranked #303 out of 4,243 analysts. Netis has a 59% success rate and gains 7.5% in his yearly returns.
TipRanks analytics demonstrate AMZN as a Strong Buy. Out of 34 analysts polled by TipRanks in the last 3 months, 32 are bullish on Amazon stock while 2 remain sidelined. With a return potential of 26%, the stock’s consensus target price stands at $946.75.