Amazon.com, Inc. AMZN's new feature Amazon Cash allows consumers to add cash to their Amazon account at brick-and-mortar retailers, including thousands of 7-Eleven stores. Customers who still want to use cash to shop online account for 27 percent of all consumers, TechCrunch said in a story.
The Analyst
Loop Capital Markets' Anthony Chukumba maintains a Buy rating on Amazon's stock with an unchanged $1,300 price target.
The Thesis
Amazon's new initiative isn't expected to be a "game changer," but is consistent with Amazon's "relentless focus" on making its business platform easier to use for consumers who want to use cash, Chukumba said in a Monday note. (See Chukumba's track record here.)
Amazon should gain market share among consumers with challenged credit, low income and underage consumers, especially ahead of the holiday shopping season, the analyst said.
The process of adding cash to load an Amazon.com balance at 7-Eleven stores was "simple and seamless" and took less than 30 seconds, according to a Loop Capital test of the process. A consumer simply prints their unique Amazon barcode — or hss it available on a smartphone — and pays cash to load the balance. A receipt is then printed for the consumer and an instant e-mail confirmation was delivered.
Price Action
Amazon's stock was trading slightly lower by 0.13 percent early Monday, but is up 50 percent since the start of 2017 and nearly 400 percent over the past five years.
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