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It changed the retail game, and as it looks to invest heavily in its logistics capabilities, the firm is likely to become even more dominant.
Indeed, last-mile delivery and intraday shipping are the next frontiers for the e-commerce business. It’s not just e-commerce, or Amazon Web Services (AWS), where Amazon’s new CEO, Andy Jassy, can make his mark. The company has been profoundly successful at moving into new verticals, bringing over its numerous Prime users with it.
Undoubtedly, Prime Video is a worthy Netflix (NASDAQ:NFLX) challenger, and it may very well outpace the likes of Netflix, as the firm looks to funnel more money into content. (See AMZN stock charts on TipRanks)
Amazon isn’t just stopping at video, though. If there’s a market that’s rich in growth and ripe for disruption, you can bet that Amazon is going to lace up its gloves to fight for a large share. These days, companies are setting their crosshairs on gaming. It’s a larger opportunity than video, and arguably a riskier endeavor.
With game-streaming platform Twitch already in the portfolio, along with cloud-gaming platform Luna, Amazon has a solid foundation to make a significant mark on the industry.
Could Amazon Gaming Be ‘AWS’ of Gaming Industry?
Amazon’s massively multiplayer online role-playing game (MMORPG) “New World” launched on September 28, after an extensive round of beta testing. The ambitious title embraces the “buy-to-play” business model, and could be Amazon’s first major dent in the gaming industry.
Early signs show immense promise, with over 650,000 concurrent players on Day 1. Despite numerous favorable reviews, many players were angry over long queue times, as servers were overwhelmed. In response, Amazon promised free server transfers.
The real question is if the MMO can continue growing and monetize in a way to be a needle-mover for AMZN stock. For now, the wildly popular “New World” may represent a drop in the bucket for the nearly $1.7-trillion company.
Wall Street’s Take
According to TipRanks’ consensus analyst rating, AMZN stock comes in as a Strong Buy. Out of 31 analyst ratings, there are 31 unanimous Buy recommendations.
As for price targets, the average AMZN price target is $4,214.47. Analyst price targets range from a low of $3,775 per share, to a high of $5,000 per share.
Disclosure: Joey Frenette owned shares of Amazon at the time of publication.
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