Amazon (AMZN): Analyst Cheers Pivotal Footsteps Forward in Sports Bidding Arena
GBH Insights' Daniel Ives sizes up impressive standing for Amazon to gain further sporting rights following its newest "'game-changing' move."
Amazon (NASDAQ:AMZN) might just scooped a huge victory in its bid and win for the rights to the Premier League matches for 2019 through 2022. This marks one of the last packages left on the heels of Sky and BT’s purchase of five others at the beginning of the year.
GBH Insights analyst Daniel Ives believes Amazon is at “just the start on the sports front” here and cheers this key stride for a package that gives the king of e-commerce the rights to 20 games each season from 2019 through 2022.
Notably, the analyst rates a Highly Attractive rating on AMZN stock with a $1,850 price target, which implies a close to 10% upside from current levels. (To watch Ives’ track record, click here)
“We expect the company to aggressively bid on more professional and collegiate sports rights over the coming years,” predicts Ives, who notes this follows Facebook’s deal to stream 25 games every week kicking off this season. Facebook’s moves signal “tip of the spear” for sports programming content initiatives in the years to come, wagers the analyst.
Ives continues, “To this point, we believe the next 12 to 18 months is a pivotal window for platforms like Facebook and Amazon among others to aggressively secure the rights to various professional sports programming especially as the Disney/ESPN launch of ESPN Plus over the coming year will be at the epicenter to Iger’s master streaming initiatives and ‘raise the stakes’ for securing future sports content in our opinion.”
The e-commerce king boasts a stellar standing and Ives anticipates “Bezos &Co.” will prove to be “a potential major disruptive force to future live sports rights.” Overall, “Amazon still remains in pole position to win incremental sporting rights as their success with the NFL’s Thursday Night Football simulcast package this past season and already signed up for the next few years and other efforts could open the door over the coming years for bidding and winning other major content packages to stream,” concludes the analyst.
TipRanks suggests the bulls roar loud on the Street when it comes to this e-commerce king’s market opportunity ahead. Out of 36 analysts polled in the last 3 months, 35 are bullish on AMZN stock while 1 remains sidelined. With a return potential of 11%, the stock’s consensus target price stands at $1,869.81.