For example, the apparel, over-the-counter medicine (excluding pharmaceutical drugs) and grocery space combine for a $130 billion total addressable market, the analyst highlighted. In addition, the pharmaceutical drug segment offers Amazon another $450 billion in incremental total addressable market in the U.S. Encouragingly, 23 percent of this market is already conducted through "mail order."
"We see Amazon's famous flywheel as spinning with increasingly impenetrable force, where customer experience, frequency, and data will only grow," Sena wrote. "We see this lead in data, coupled with the company's edge in compute efficiency, as increasingly feeding insights into supply chain, for its retail, video, and other efforts, and through AWS, for its partners."
Bottom line, Amazon is well positioned to accelerate its growth and the analyst is expecting a sustainable 20 percent revenue growth rate through at least 2021.
Related Links: Are Amazon, Google, Facebook And Apple Monopolies? In Some Ways, But This Isn't Illegal Amazon Can't Win The Battle Against Off-Price Retailers ______ Image Credit: By Unknown - AWS, Public Domain, via Wikimedia Commons© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.