Monday's Market Minute: What's Ahead For Amazon?

Amazon.com, Inc. AMZN has much on the horizon, following a busy week last week when the company announced its smart home brands are continuing to get smarter. At the Amazon Event 2020, the e-commerce giant unveiled Amazon Luna, spherical echo speakers, an updated Fire TV, a flying Ring Camera, a Ring Camera to work with Teslas, among other new products.

The company has also declared Prime Day will return on October 13 and 14 for Prime members in the U.S., U.K., U.A.E., Spain, Singapore, Netherlands, Mexico, Luxembourg, Japan, Italy, Germany, France, China, Belgium, Austria, Australia, Tukey, and Brazil. The event will offer discounts on over 1 million deals throughout all categories, and starting immediately, Prime members can shop early discounts every day until October 13.

Amazon’s food delivery service “Deliveroo” is also in early talks about a potential IPO. Deliveroo was last valued at roughly $2 billion dollars, and like other delivery services, has seen a spike in demand during the ongoing COVID-19 pandemic.

A Baird analyst has taken note of Amazon’s innovations and said Monday he remains comfortable with his “high-end” third-quarter revenue estimate for Amazon. The analyst is increasing his fourth-quarter estimate to 29% growth to incorporate strong e-commerce trends. His checks also suggest another strong quarter is ahead for Amazon Retail and Web Services.

Despite the stock’s 63% rally YTD, he said he believes the shares remain at “attractive buying levels” and maintains an outperform rating on the shares with a $3,500 price target. Amazon’s stock is trading higher Monday pre-market but has fallen about 10% in the month of September.

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