BTIG: Amazon, Wal-Mart Competing Against Each Other To Lower Prices 'Helps Everybody'
Wal-Mart Stores, Inc. (NYSE: WMT) announced on Monday that it will be launching a rival sale on Wednesday against Amazon.com, Inc. (NASDAQ: AMZN)'s Prime Day. Whereas Amazon's Prime Day will cater only to customers who have subscribed to Amazon Prime membership, Wal-Mart's sale will be open for all customers.
Dan Greenhaus, BTIG analyst, was on CNBC to weigh in on this and how these sales are going to impact the overall e-commerce industry.
Amazon has The Lead
"I'm all for shopping holidays," Greenhaus began. "But let's be clear...this is sort of Wal-Mart trying to compete with Amazon on Amazon's turf and I don't and my company doesn't follow either one, but it seems to me that I would have more awareness of an Amazon online discount day, if you would, than a Wal-Mart online discount day."
'Lower Prices Are A Good Thing'
Greenhaus was asked whether this discount day will benefit every online retailer as people will check and compare prices on a variety of sites. He replied, "Well, of course. Listen lower prices helps everybody, despite what you hear, lower prices are a good thing.
"And in this particular case to have two behemoths like an Amazon or a Wal-Mart competing against each other to lower prices ultimately frees up buying power for consumers to spend money on other things.
"But again in terms of the online space, Amazon is the dominant player, Wal-Mart's competing on their turf. I can't imagine that Wal-Mart comes out ahead. The argument could be that they are simply trying to maintain share," Greenhaus concluded.
Latest Ratings for WMT
|Oct 2016||PiperJaffray||Initiates Coverage On||Neutral|
|Oct 2016||Deutsche Bank||Maintains||Hold|
|Sep 2016||Guggenheim||Initiates Coverage on||Buy|
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