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JP Morgan: Amazon May Soon Become $1 Trillion Company

JP Morgan: Amazon May Soon Become $1 Trillion Company
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By    |   Wednesday, 10 January 2018 03:46 PM

Online retail titan Amazon.com reportedly may reach the $1 trillion market value milestone as it dominates new growth markets.

"We believe Amazon has the potential to be a $1 trillion dollar company over time, as it remains early in the eCommerce & cloud secular shifts and in our view Amazon is investing in more major growth opportunities than any other company we cover," J.P. Morgan analyst Doug Anmuth wrote in a note to clients Wednesday, CNBC reported.

Anmuth raised his price target for Amazon shares to $1,385 from $1,375. Amazon stock was at $1,251.15 late Wednesday.

Seattle-based Amazon only has 10 percent share of the U.S. online advertising market compared to its 42 percent share of e-commerce sales. Facebook and Google dominate the global online ad market outside of China, CNBC reported the note said.

"We believe advertisers and agencies would welcome a third scaled digital player," he wrote. "Amazon is best positioned in our view, with its in-market customers, scale, strong access to data, shopping history, ability to close the loop, & leading market share in smart home speakers with Alexa/Echo."

To be sure, Amazon late last month said it shipped over 5 billion items worldwide via its subscription based Prime service in 2017 while adding more new members than ever before.

The e-commerce giant, which revealed its Prime shipment numbers for the first time, did not give comparable full-year shipment number for 2016, Reuters explained.

Amazon claimed that its Fire TV Stick and voice controlled smart device Echo Dot were the best-selling products among U.S. Prime members from any manufacturer in any category across all of its product offerings.

Amazon Prime, which offers its users services like free two-day shipping for certain purchases, unlimited streaming of movies and TV shows with Prime Video, has been attracting more subscribers every year.

The company said it shipped over 1 billion items worldwide via Prime during holiday season in 2016.

Amazon Prime, which entered countries including Mexico, Netherlands, Luxembourg and Singapore last year, now is present in 16 countries around the world.

(Newsmax wire services contributed to this report).

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Online retail titan Amazon.com reportedly may reach the $1 trillion market value milestone as it dominates new growth markets, according to a top Wall Street firm.
jp morgan, amazon, trillion, dollar, company
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2018-46-10
Wednesday, 10 January 2018 03:46 PM
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