Nasdaq AMZN Amazon

Amazon AMZN continues to make concerted efforts to bolster its footprint in the booming e-commerce market of India.This is evident from its latest signing of a memorandum of understanding (MoU) with a government of Manipur enterprise — Manipur Handloom & Handicrafts D

U.S. stocks closed higher for the second straight day on Tuesday, led by a rally in tech and energy stocks. However, the retail sector came under pressure after one of the top retail giants issued warning about excess inventories that could impact its current quarter prof

It's no secret that the market has taken a beating thus far this year, and technology growth stocks have had an especially tough couple of months. E-commerce stocks have been no exception, but there are four online marketplaces that I think are still worthy of a long look from in

Given enough time, most stocks climb higher. But not all stocks dish out the same sort of gains. While the average ticker rises an average of about 10% per year, a handful of names have quadrupled or even quintupled that pace over the course of just the past few years.

Australia's antitrust regulator has filed a lawsuit against Airbnb Inc, accusing the accommodation-sharing website of misleading users into paying more than advertised for their stays, widening its scrutiny of global technology platforms.

What happened Hardly for the first time in recent months, the stock of Peloton Interactive (NASDAQ: PTON) landed in negative territory on Tuesday. The shares slid by 0.4%, against the nearly 1% gain of the frothy S&P 500 index, on the back of a high-level executive change.

Macro data points appear to be the order of the day and are driving market sentiment. Morgan Stanley analyst Brian Nowak is keeping a close watch on such developments and has already lowered online ad and e-comm estimates while also having a “recession playbook” close at hand.

However, the analyst also thinks its “important to think through the chance that there is a softer landing... and that middle-to-high end consumer holds on.” “Before you know it,” Nowak went on to say, “we could be debating '23 micro-level fundamentals.”

And one company that bears looking at as 2023 begins to glimmer in the distance is Amazon (AMZN).

The macro conditions and the post-pandemic pivot away from online shopping to brick-and-mortar retail have hurt the ecommerce giant. But Amazon’s profitability issues are more company specific.  

The company has spent huge amounts on expanding its shipping/logistics and warehouse capabilities over the past few years. So much so that its shipping/logistics square footage in 2022 is “set to be larger than its fulfillment footprint in 2019.”

At the same time, the company has also expanded the workforce and increased wages. The problem, though, is that with the economic downturn and waning demand, now the company has an excess of both. And these have combined to weigh on near-term profitability.

However, Amazon is now “significantly slowing its forward build.” Nowak also expects to see fulfillment utilization getting better (increasing ~8% year-over-year in 2023) with units/shipping square foot “stabilizing” by next year.

And with Amazon pointing to savings made compared to what it would need to pay to external carriers, the degree to which the company is able to “further insource” extra shipping capacity via AMZL (Amazon Logistics) should be a “positive driver of EBIT.”

“Similar to past AMZN build cycles,” Nowak explained, “we see a slowing build and rising utilization leading to improved retail unit economics (seen through fulfillment and shipping cost/unit trends) and effectively a ‘harvest’ of retail profitability.”

To this end, Nowak reiterated an Overweight (i.e. Buy) rating on Amazon shares along with a $175 price target. The implication for investors? Upside of ~42%. (To watch Nowak’s track record, click here)

Overall, Wall Street remains bullish on Amazon. One Hold and Sell, each, are countered by 36 Buy ratings and all coalesce to a Strong Buy consensus rating. The average target is slightly above Nowak’s objective, and at $180.13, is set to yield returns of ~46% in the year ahead. (See Amazon stock forecast on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Yesterday, Amazon AMZN shares started trading at post-split levels, undoubtedly to the likes of market participants. The e-commerce giant performed a 20-for-1 split, and the announcement earlier this year came as a bit of a surprise – it’s Amazon’s first stock split since

CrowdStrike CRWD is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services.CrowdStrike is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches and increasing necessity for securit

Shareholders of Shopify Inc on Tuesday voted in favor of protecting Chief Executive Officer Tobias Lutke's 40% voting stake, a source told Reuters, citing preliminary results from the e-commerce firm's annual shareholder meeting.

What happened Rivian Automotive (NASDAQ: RIVN) released its first-ever annual letter to shareholders yesterday, and it gave investors more visibility into its growth plans. But the reaction wasn't overly positive, potentially because of some risks the company highlighted. Rivian

NEW YORK (Reuters Breakingviews) - Know your customer: it’s the golden rule of retail, and one that U.S. store chain Target seems to have flunked. The company slashed https://investors.target.com/news-releases/news-release-details/target-c

Apple Inc wants to power the dashboard of your next car, but first it must convince automakers they will not end up surrendering future profits to the iPhone company like the makers of flip-phone handsets.

Rivian Automotive (NASDAQ: RIVN) debuted with a lot of fanfare on the Nasdaq stock exchange last year, with the company raising $13.7 billion in proceeds from its initial public offering (IPO). By the end of November, the electric vehicle (EV) stock was commanding a market capita

The Biden administration must protect young adults who could lose U.S. immigration status because of processing delays for permanent residency, tech companies including Amazon.com Inc and Alphabet Inc's Google said on Tuesday.

U.S. stock indexes slipped in choppy trading on Tuesday as investors digested Target Corp's gloomy margin forecast that spooked the retail sector, while awaiting inflation data due later this week.

Walt Disney (NYSE: DIS) is arguably the most influential, vertically integrated media company in the world. And like most success stories, its history is riddled with risks, gambles, dreams, failures, and perseverance.

With revenue and net income that have increased at a compound annual rate of 25% and 33%, respectively, over the past decade, discount-store chain Five Below (NASDAQ: FIVE) hasn't had a problem registering massive growth. And the stock has followed suit, rising nearly 400% since

Warren Buffett is known for being one of the best investors of all time. If you have $300 you won't need for necessities in the next few years, it would not be a bad idea to buy a stock that the legendary investor owns. My favorite stock among Warren Buffett's Berkshire Hathaway

U.S. stock indexes fell on Tuesday as elevated Treasury yields hit rate-sensitive growth stocks, while Target Corp's gloomy margin forecast spooked the retail sector.