Market Overview

NYU's Scott Galloway: Amazon Doesn't Need To Acquire Target

Share:
NYU's Scott Galloway: Amazon Doesn't Need To Acquire Target
Related AMZN
How The GDPR's Data Portability Rules Could Affect Client Churn
Analyst: Trump Administration Even Less Likely To Pursue Antitrust Action Against Google Than Obama
Amazon plans Latin American cloud expansion (Seeking Alpha)
Related TGT
The Week Ahead: Target, Best Buy Help Close Out Earnings Season
Trade Winds Blow Milder As Progress Cited In U.S. Talks With China
Strum And Drang In Retail (Seeking Alpha)

Is Target Corporation (NYSE: TGT) a prime takeout candidate? According to Loup Ventures' Gene Munster, the answer is a yes, with Amazon.com, Inc. (NASDAQ: AMZN) the most likely buyer. But as is always the case with bold predictions, not everyone agrees.

The Expert

NYU Stern Professor Scott Galloway.

The Thesis

Munster, a former Wall Street research analyst turned venture capitalist, may be wrong for a few compelling reasons, Galloway said as a guest during "Bloomberg Daybreak: Americas." By acquiring Target, Amazon would gain scale and a deep relationship with consumer brands — but Amazon already has both of those things.

Amazon's strategy is to mainly focus on the affluent consumer segment, but Target doesn't necessarily fit into this profile, Galloway said. An acquisition that would be more in-line with Amazon's strategy would be Nordstrom, Inc. (NYSE: JWN), which would satisfy its desire to not only target the affluent market but also give immediate access and relationships with high-end luxury brands who "don't trust" Amazon, the professor said. 

A third possibility is that Amazon will "fly under the radar" and not announce any new acquisitions for the time being, Galloway said. 

Price Action

Shares of Target were trading lower by around 2 percent Thursday afternoon while Amazon's stock was higher by around 0.2 percent at the same time.

Related Links:

Bitcoin Bites, Amazon Acquires: Gene Munster's 8 Tech Predictions For 2018

Gene Munster On Apple's 2018 Outlook

Photo courtesy of Target. 

Posted-In: Bloomberg Department Stores Gene Munster Loup Ventures retailersNews M&A Media Best of Benzinga

 

Related Articles (AMZN + JWN)

View Comments and Join the Discussion!