The National Retail Federation’s annual Shop.org conference – a showcase for the hottest trends in consumer technology – is in full swing at the Los Angeles Convention Center, where over 1,500 attendees are gathered for two full days of sessions, events and networking.
Straight from the conference, Baird’s top analyst Colin Sebastian offers a few insights into internet giants Amazon (AMZN), Alphabet’s (GOOGL) Google, and Facebook (FB).
Sebastian wrote, “Day 2 of the conference was highlighted by a focus on AI/ML technologies and evolving use cases for voice-enabled commerce. At the conference, Google outlined expanding capabilities to facilitate commerce, capitalizing on the “treasure trove” of data provided by seven different properties each with at least one billion active users. Smart shopping campaigns leverage machine learning to make sense of touch-points along the consumer purchase path, including better offline attribution capabilities and improved purchase conversion rates (20% on average).”
The analyst continued, “Consistent with prior checks this year, digital marketing attendees in our checks overwhelmingly cited Amazon as the fastest-growing channel for advertising budgets, while many retailers are also leveraging their Amazon advertising data to re-target users on other channels (namely Facebook) to drive traffic/ sales to their own websites. Marketing contacts also suggested that despite negative headlines around data privacy, slowing engagement and shift to Stories, Facebook advertising ROI remains strong. While limited access to Facebook’s ad APIs created some issues for 3P data providers and friction for advertisers (now must upload 1P data directly to Facebook), the platform’s targeting capabilities and reach remain best-in-class.”
Net net, Sebastian rates AMZN, GOOGL and FB an Outperform with price targets of $2,100, $1,380, and $195, respectively.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Colin Sebastian has a yearly average return of 28.5% and a 75% success rate. Sebastian has a 48.5% average return when recommending AMZN, and is ranked #16 out of 4875 analysts.