AMZN.. Is Amazon Unstoppable? Gene Munster Thinks So
Warren Buffett had some flattering remarks for Amazon.com, Inc. (NASDQ: AMZN)’s CEO Jeff Bezos, but does that automatically translate to a screaming buy for the stock?
Piper Jaffray’s Gene Munster was a guest on CNBC and answered that exact question.
According to Munster, Amazon won’t have “much if any competition” over the next decade as the company is building the “new model for retail.” Specifically, the company is taking the online aspect and moving towards same-day and same-hour features. In addition, the analyst highlighted the AWS segment which will power businesses for the next decade.
Jan Kniffen, a CNBC contributor with relevant experience in the retail space took a somewhat different approach.
“I say all the time, Amazon is the biggest threat to Wal-Mart Stores, Inc. (NYSE: WMT) as far as profitability goes,” he said. “Wal-Mart is the biggest threat to Amazon as far as growth in the retail side goes.”
Kniffen continued that he is still a “fan” of Wal-Mart and the company will continue to “do well” and be competitive with Amazon.
Kniffen added that Amazon “gets what you want, when you want it at the price you want it” – a business model that is “really hard to beat” for traditional retailers. However, this doesn’t imply there won’t be room for traditional brick and mortar retails in the online space, but it does imply there will be less players overall.
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