Amazon.com, Inc. (AMZN) Is Cyber Monday’s “Clear Star of the Show”, Says Daniel Ives

GBH's Daniel Ives notes Cyber Monday exhibited a "fiercely" cutthroat pricing environment, but AMZN rose to the occasion, set to capture up nearly half of all holiday online retail sales.


Amazon.com, Inc. (NASDAQ:AMZN) has solidified its spot as one of the “top picks” in the financial universe for GBH Insights analyst Daniel Ives.

The analyst notes that after seeing “robust” Cyber Monday tailwinds today, a.k.a. the “Superbowl of consumer online spending” for retailers, this looks great for CEO Jeff Bezos and co. for a fourth quarter likely to benefit from more stellar-than-anticipated trends. So far, year-over-year gains are circling the 16% to 18% trajectory range.

As such, the analyst reiterates a Highly Attractive rating on AMZN stock with a price target of $1,270, which implies a close to 6% upside from where the stock is currently trading. (To watch Ives’ track record, click here)

Ives believes, “This growth is consistent with the strong trend we saw emerge on Black Friday and throughout the weekend as many consumers continue to transition from offline (brick and mortar) to online retail sales with Amazon being the clear star of the show.” Based on the analyst’s ecommerce trend analysis coupled with survey work, the online auction and e-commerce king is moving on a path to garnering up to half of total holiday online retail sales compared to 38% of sales this same time last year.

“We are seeing Prime membership remain the ‘golden jewel’ of the Bezos empire as our estimate of 85 million Prime members has increased significantly (~40%) year over year with the average Prime customer forecasted to spend between 20%-25% more this holiday season than the year ago period,” continues the analyst, adding, “The ring-fence that Amazon has built around its Prime customer base has significantly benefited the company in a fiercely competitive Cyber Monday pricing environment with much more competitive prices from Walmart in particular seen across inventory during the day.”

As e-commerce Black Friday and Cyber Monday sales have trended past expectations, this is an impressive indication approaching the remainder of the holiday season, Ives concludes, “for Amazon (and its investors) in particular.” Based on Ives’ estimation, the company could be poised to capture around half of domestic e-commerce holiday sales for 2017, meaning a fourth quarter beat could be forthcoming fueled by this striking “momentum.”

Amazon reigns as an e-commerce darling on the Street, meaning Ives cheers among good bullish company. Consider that TipRanks analytics indicate AMZN as a Strong Buy. Out of 33 analysts polled by TipRank in the last 3 months, 32 are bullish on Amazon stock while 1 remains sidelined. With a return potential of 5%, the stock’s consensus target price stands at $1,264.13.

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