Amazon.com, Inc.’s (AMZN) Role as E-Commerce Leader Just Getting Stronger
On back of attending ChannelAdvisor’s Catalyst 2017 annual user conference in Nasvhille on March 7th and 8th, William Blair analyst Ryan Domyancic has emerged with a bolstered bullish perspective on Amazon.com, Inc. (NASDAQ:AMZN), believing the online auction and e-commerce leader’s position in the marketplace continues to strengthen, even amid a fresh wave of new competition. As such, the analyst reiterates an Outperform rating on AMZN without listing a price target.
Domyancic highlights, “Nearly all of the attendees were third-party sellers on Amazon. Amazon is usually the topic of conversation at the event given it generally accounts for 60% to 70% of merchants’ marketplace sales. Merchants we spoke with report their reliance on Amazon is unchanged over the past year. We also found sellers continue to find it is easier to sell on marketplaces than to drive traffic to their own e-commerce enabled websites. Finally, there was a lot of discussion about Amazon’s Sponsored Product advertisements. The need to advertise on Amazon was reportedly becoming ‘table stakes’ and sellers found themselves having to allocate spending to Sponsored Product ads.”
“After attending the event, we believe Amazon is only getting stronger despite large companies increasing their focus on marketplaces over the past few years,” Domyanic contends.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, three-star analyst Ryan Domyancic is ranked #1,918 out of 4,515 analysts. Domyancic has an 86% success rate and realizes 10.2% in his yearly returns. When recommending AMZN, Domyancic yields 11.2% in average profits on the stock.
TipRanks analytics demonstrate AMZN as a Strong Buy. Based on 28 analysts polled by TipRanks in the last 3 months, 27 rate a Buy on Amazon stock while 1 maintains a Hold. The 12-month average price target stands at $941.68, marking a 10% upside from where the stock is currently trading.