Market Overview

Amazon Could Make Smaller-Scale Purchases In AI/Machine Learning, AR/VR, Cloud

Amazon Could Make Smaller-Scale Purchases In AI/Machine Learning, AR/VR, Cloud
Related AMZN
Google CEO Sundar Pichai Addresses Search Bias, Data Security In Capitol Hill Testimony
Don't Be Fooled By Package Delivery Confirmation Scams
Report: Japan to increase scrutiny of foreign big-data firms (Seeking Alpha), Inc. (NASDAQ: AMZN) acquisition of Whole Foods Market is now officially complete, which means many investors are pondering what's next for the online giant that now boasts a physical retail space.

Unfortunately, the answer is Amazon likely doesn't have any large-scale acquisition plans for the near term, Baird Equity Research's Colin Sebastian's commented in a research report. Amazon will stay true to its "disciplined" acquisition strategy and will likely now focus on optimizing its Whole Foods acquisition, which fits in with its multi-channel grocery strategy.

The acquisition of Whole Foods will replace some store visits for Prime members through Amazon Fresh, but at the same time, many Prime users prefer "pick-up points" or to buy their food in-store, the analyst continued. This can create "cold chain efficiencies" that will help Amazon increase its overall scale in all aspects of the grocery store, from online to delivery and in-store.


Moreover, the integration of Prime with Whole Foods will likely result in share gains within the under-penetrated grocery category and also represent a "Prime member acquisition tool," Sebastian also noted.

Finally, Amazon could still be open to overseeing small-scale opportunistic acquisitions in areas such as artificial and augmented reality, cloud, machine learning, and artificial intelligence.

Related Links:

Bananas, Eggs, Salmon And Kale Among The Many Items Now Cheaper At Whole Foods

4 Topics Of Interest As The Amazon-Whole Foods Deal Is Now Official

Latest Ratings for AMZN

Oct 2018JefferiesMaintainsBuyBuy
Oct 2018Bank of AmericaMaintainsBuyBuy
Oct 2018BarclaysMaintainsOverweightOverweight

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: food Food Prices GroceryAnalyst Color M&A Analyst Ratings Tech General Best of Benzinga


Related Articles (AMZN)

View Comments and Join the Discussion!

Latest Ratings

TVPTImperial CapitalDowngrades15.8
ACORGoldman SachsDowngrades10.0
BCOVB. Riley FBRUpgrades12.0
CAMPFirst AnalysisDowngrades22.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Valeant Pharma Lower On No News

12 Biggest Mid-Day Gainers For Tuesday