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Morgan Stanley: Amazon Could Be $1 Trillion Company Within Year

Morgan Stanley: Amazon Could Be $1 Trillion Company Within Year

By    |   Monday, 13 November 2017 03:29 PM

Morgan Stanley reportedly believes online titan Amazon.com Inc. may reach a $2,000 share price in the next 12 months.

"Amazon's high margin [revenue] disclosure speaks to the $1trln ($2,000/sh) sum of parts bull case," CNBC.com reported, citing analyst Brian Nowak’s note entitled "The Math Behind the Trillion Dollar Bull Case."

Morgan Stanley reiterated its overweight rating for Amazon shares, presenting a "bull case" 12-month price target of $2,000 per share or roughly a $1 trillion market cap, CNBC reported.

Amazon's stock price was at $1,138.85, up $13.50, or 1.2 percent, early Monday afternoon n Nsadq trading.

Meanwhile, the Seattle online titan is apparently taking an unconventional approach to boosting sales as the holiday shipping season begins.

Amazon is cutting prices of products from third-party sellers on its website, moving beyond its more typical method of discounts on items it sells directly, Reuters explained.

The “discount provided by Amazon” applies to products including board games and technological gadgets offered by other merchants as the holiday season approaches. The retailer has been trying to compete aggressively on some items to win sales and draw customers away from low-priced rivals like Wal-Mart Stores Inc..

The move allows Amazon to sell the products at lower prices while still giving full price to the sellers, Reuters explained.

“When Amazon provides a discount, customers get the products they want at a price they’ll love, and small businesses receive increased sales at their listed asking price,” an Amazon spokeswoman said in an emailed statement, noting that businesses can opt out at any time.

Marketing the items at lower prices, however, risks angering Amazon’s third-party sellers, who instead could list their products elsewhere online. The move has drawn attention within Amazon Services’ seller forum.

Some merchants have criticized Amazon in the past for discounting and, they say, devaluing their products.

(Newsmax wire services contributed to this report).

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Monday, 13 November 2017 03:29 PM
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