Market Overview

Amazon's Lust For RadioShack's Physical Assets; SunTrust Analyst Dishes


While the New York Stock Exchange has begun the process of de-listing the stock of RadioShack Corporation (NYSE: RSH), companies are looking to prey on the assets held by the now bankrupt company. Among these stock predators is, Inc. (NASDAQ: AMZN), as Bloomberg recently reported.

Robert Peck, analyst at SunTrust Robinson, was on CNBC to discuss why it will make sense for Amazon to acquire some of RadioShack’s assets.

Related Link: Will RadioShack Be The First Retailer To Go Bust In 2015?

Why Would Amazon Be Interested In RadioShack’s Assets?

“We wrote a piece actually back in September,” Peck said. “We went over a couple of reasons why we thought Amazon will be interested in these assets, particularly taking over the leases to some of these stores.”

“One is sort of obvious: you could see them demo some of their own products, whether it be Fire phones or Kindles or Fire TV or even show the Prime streaming services.”

He continued, “But the other and the big key part about it's -- at the end of the day -- Amazon is really a logistics company and having these physical presences could really help them with distribution, same-day delivery, pushing further and further to local commerce.”

Related Link: Why RadioShack Could Sell Half Of Its Stores To Sprint

Will Amazon Keep The RadioShack Name Or Re-Brand The Stores?

Peck pondered on the implications of re-branding the bricks and mortar RadioShacks. “I would guess that they would re-brand it and make it more of a distribution center,” Peck replied.

“Also, think of the concept of them having stock maybe top 100 items or so in the store, where you can really walk in the morning, pick out what you want instead of having to lug it home, they same-day ship it to your house.”

“When you get home, it’s actually waiting there for you. So, the whole logistics and same-day delivery is part of it, it’s a big part of this.”

Latest Ratings for AMZN

Oct 2019MaintainsBuy
Sep 2019MaintainsOverweight
Sep 2019MaintainsOutperform

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