NEW YORK (TheStreet) -Amazon (AMZN - Get Report) was the stock that could do no wrong. That is, until their fourth quarter report on January 30th, when the stock dropped from over $400/share to the mid-$300s. While shares have recovered slightly, this pullback remains an opportunity to buy into one of the winners of the future. Today Piper highlighted new opportunities at Amazon, emphasizing the AmazonFresh initiatives. While this in and of itself isn't news or momentous, the note that was published speaks to the notion that the company still has numerous growth drivers.
We know that traffic remains an issue for many retailers--And Amazon continues to take share of the consumer's wallet. The Fresh example is just one that speaks to the huge opportunity. If Amazon wins the grocery segment, that presents a $718bn opportunity--Even if they just got a fraction of this, it would be huge. Plus, grocery purchases lead to more purchases in other areas.
The setup of Fresh is appealing. For $299 yearly membership which also gives you Amazon Prime membership ($79 value), you get same-day delivery on orders over $35 including fresh grocery and local products. For those of us that live in extreme-temperature cities (too cold, too hot) and don't like lugging heavy bags regularly, this is an attractive proposition.
This is just an interesting aside to the bullish Amazon story. Last quarter, North American revenue grew 24% YoY vs 12% for the US e-commerce market. Even though Amazon controls nearly 20% of all e-commerce in the US and 13.5% of international e-commerce, it is less than 1% of total retail sales. The e-commerce growth potential is huge-- not to mention the Kindle family.
Must Read: Honeywell: Why It's At All-Time Highs
--Written by Nicole Urken in New York.
>Contact by Email.
11/14/14 - 08:54 AM EST
11/14/14 - 08:35 AM EST
10/31/14 - 10:02 AM EDT
06/09/14 - 09:36 AM EDT
05/29/14 - 11:15 AM EDT
04/29/16 - 15:55 PM EDT
04/29/16 - 15:33 PM EDT
04/29/16 - 11:02 AM EDT
04/29/16 - 10:51 AM EDT
04/25/16 - 01:00 AM EDT
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Trifecta Stocks analyzes over 4,000 equities weekly to find the elite 1% of stocks that pass rigorous quantitative, fundamental and technical tests.
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
Chris Versace, using sophisticated stock screening and fundamental research, identifies potentially explosive small and mid-cap stocks.
Master swing trader Alan Farley uses his sophisticated software screens to review thousands of stocks each day for you, to find just the handful that meet his demanding criteria.