Skip to main content

Market Overview

Benchmark's Kurnos: It Wouldn't Shock Me If Amazon Bought


On Tuesday, Marc Lore, founder and former CEO of Quidsi (owner of famed website launched his new e-commerce website, which guarantees its subscribers will access the lowest prices across roughly 10 million items.

In a recent note, Benchmark analyst Daniel Kurnos looks into, Inc. (NASDAQ: AMZN) as is launched and comments that, while it is still early, he would not discard the possibility of the latter being acquired by the Internet retail giant.

He assures that Lore “clearly has a strong retailing background and a history of selling companies (or pieces of companies: see quidsi,, etc.) to Amazon.”

Despite being a not-shocking outcome, Kurnos is concerned about three issues:

1) The pressure that being the pricing leader will put on’s profitability. The analyst says he “read somewhere that Jet needed to achieve $208 in transactional GMV (gross merchandise value) to be economically viable, and that they aim to get there around 2020.”

2) The obsession with Amazon's pricing, which he does not understand. Kurnos caught several articles that highlighted Amazon’s poor pricing in several verticals. However, he believes that what the site offers is not pricing, but “convenience and selection.” On the other hand, compels users to pay a membership fee and buy in bulk. Thus, Kurnos wants to see how’s selection looks like in the first few years.

3) The customers’ willingness to $49.99 per year “just for savings.”

“Pay double and you get 2-day free shipping from Amazon with access to literally everything plus video and a whole host of other benefits,” Kurnos states, adding that he hasn’t seen a successful members-only website launch in a while now. “How are RueLaLa, Gilt, and those guys faring? Lots of losses to be sure...”

Latest Ratings for AMZN

Apr 2021Credit SuisseMaintainsOutperform
Apr 2021Evercore ISI GroupAssumesOutperform
Feb 2021CitigroupMaintainsBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings


Related Articles (AMZN)

View Comments and Join the Discussion!

Posted-In: Benchmark Daniel Kurnos Marc LoreAnalyst Color Analyst Ratings Tech

Latest Ratings

GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at