Market Overview

Amazon Business Is A $245B Opportunity, According To Bank Of America

Share:
Amazon Business Is A $245B Opportunity, According To Bank Of America

Amazon.com, Inc. (NASDAQ: AMZN) is off to another hot start to 2019, and one analyst said Tuesday Amazon Business is a long-term growth driver that's really starting to pick up steam.

The Analyst

Bank of America analyst Justin Post reiterated his Buy rating and $2,100 price target for Amazon.

The Thesis

As Amazon’s e-commerce business matures, the company’s next major shot in the arm could come from business-to-business sales.

Amazon Business was launched as Amazon Supply back in 2012. In the past two years alone, Amazon Business’ gross merchandise volume (GMV) run rate has grown from $1 billion to $10 billion, according to Post. He said momentum should continue throughout the next decade.

“Globally, the 2021 B2B eCommerce TAM is estimated at $6.7tn and, excluding the Chinese B2B market at an estimated 60% of total, we project a ‘21 international B2B online TAM of $2.1tn,” Post wrote in a note.

Post said margins may be a challenge, but the potential impact of Amazon expanding its Business reach could have a huge impact on the stock’s long-term valuation.

Post estimates Amazon Business GMV will more than triple from here to $34 billion by 2023. Amazon Business already has more than one million customers. But if Amazon gains just 5 percent international market share and 10 percent U.S. market share, Post estimates Amazon Business could contribute an additional $125 billion to $245 billion in value over time.

Price Action

Amazon's stock traded higher by 2 percent to $1,777 per share at time of publication.

Related Links:

Do You Love Cult Stocks?

Barclays Analyst Says Tesla Is No Apple

Latest Ratings for AMZN

DateFirmActionFromTo
Dec 2019AssumesBuy
Nov 2019Initiates Coverage OnHold
Oct 2019MaintainsMarket Outperform

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Amazon Business Bank of America Justin PostAnalyst Color Reiteration Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (AMZN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TOLGoldman SachsInitiates Coverage On42.0
KBHGoldman SachsInitiates Coverage On36.0
YEXTSunTrust Robinson HumphreyMaintains28.0
LHCGSunTrust Robinson HumphreyMaintains160.0
DLRSunTrust Robinson HumphreyMaintains140.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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 vipaccounts@benzinga.com

What To Make Of Small-Cap ETF Flows

Hyundai And Kia Invest $300 Million In India's Cab-Hailing Giant Ola