The e-commerce giant can use brick-and-mortar stores as "showrooms" for hardware like the Amazon Echo and Kindle Fire, which will allow the company to gain more members for its Amazon Prime annual subscription, Teikametrics CEO Alasdair McLean-Foreman said on CNBC's "Closing Bell" on Friday afternoon.
Amazon Prime members buy a lot more than regular Amazon consumers based on data that Teikametrics receives, he noted, saying they are the "stickiest and most profitable" consumers.
This move will allow Amazon.com to "highlight their product lineup," Benchmark Company senior analyst Daniel Kurnos said in agreement with McLean-Foreman.
"It certainly makes some sense from a branding perspective," he concluded.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Amazon.com as a Buy with a ratings score of B-. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: AMZN