To expands its footprint in the brick-and-mortar retail segment, E-commerce giant Amazon (AMZN) plans to open large physical stores in the U.S., according to a report by The Wall Street Journal.
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Apart from E-commerce services, Amazon also provides artificial intelligence, digital streaming and cloud computing services. (See Amazon stock chart on TipRanks)
The company is likely to open its first department stores, spanning around 30,000 square feet, in California and Ohio. These shops will stock products from well-known consumer brands.
On August 4, Loop Capital analyst Anthony Chukumba reiterated a Buy rating on the stock with a price target of $3,775 (18.4% upside potential).
After Amazon missed revenues estimates in the second quarter and issued worse-than-expected guidance for the third quarter, the analyst said, “We believe this was largely due to difficulties forecasting the impacts of a return to normalized consumer shopping behavior as well as anniversarying difficult pandemic-inflated results from last year.”
Overall, the stock has a Strong Buy consensus rating based on 30 unanimous Buys. The average Amazon price target of $4,214.13 implies 32.2% upside potential. The company’s shares have lost 3.3% over the past year.
According to TipRanks’ Smart Score rating system, Amazon scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.
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