NYU's Scott Galloway: Amazon Doesn't Need To Acquire Target

Is Target Corporation TGT a prime takeout candidate? According to Loup Ventures' Gene Munster, the answer is a yes, with Amazon.com, Inc. AMZN the most likely buyer. But as is always the case with bold predictions, not everyone agrees.

The Expert

NYU Stern Professor Scott Galloway.

The Thesis

Munster, a former Wall Street research analyst turned venture capitalist, may be wrong for a few compelling reasons, Galloway said as a guest during "Bloomberg Daybreak: Americas." By acquiring Target, Amazon would gain scale and a deep relationship with consumer brands — but Amazon already has both of those things.

Amazon's strategy is to mainly focus on the affluent consumer segment, but Target doesn't necessarily fit into this profile, Galloway said. An acquisition that would be more in-line with Amazon's strategy would be Nordstrom, Inc. JWN, which would satisfy its desire to not only target the affluent market but also give immediate access and relationships with high-end luxury brands who "don't trust" Amazon, the professor said. 

A third possibility is that Amazon will "fly under the radar" and not announce any new acquisitions for the time being, Galloway said. 

Price Action

Shares of Target were trading lower by around 2 percent Thursday afternoon while Amazon's stock was higher by around 0.2 percent at the same time.

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Photo courtesy of Target.