Wall Street expects huge jump in Amazon’s Q4 sales, as old retailers sink – CNBC
Amazon keeps punishing competitors by constantly adding new features and services to its logistics network and subscription offerings, ensuring it has the best prices, widest selection of products and most efficient delivery systems. Meanwhile, malls are going vacant as Macy’s, Sears and J.C. Penney close stores.
Prime memberships at Amazon run $99 a year and include speedy shipping (even on Sundays), digital content like music and video, one-hour restaurant delivery and access to the Prime Pantry grocery service. With the Echo personal assistant, the hottest-selling device over the holidays, Amazon makes all of that and much more available with voice commands.
Add it all up and Amazon isn’t just spearheading the continued shift to web and mobile commerce, but is bundling it all together in ways that no rival can match.
In a report early last year, eMarketer predicted Amazon would grow 13 percent a year through 2020, while none of the world’s other top 20 retailers would expand more than 7 percent annually. Factoring in all of Amazon’s businesses, growth will be even faster. According to analysts polled by FactSet, sales will increase 23 percent in 2017, 21 percent in 2018 and 18 percent in 2019, following 28 percent in the year that just ended.
Wall Street remains exceptionally bullish on the stock, with 91 percent of analysts tracked by FactSet carrying “buy” recommendations.
But the administration of President Donald Trump has introduced some investor skepticism. Trump and Amazon CEO Jeff Bezos publicly sparred during the campaign, in part over how Trump was covered by The Washington Post, which Bezos owns. Trump indicated that Amazon had an antitrust issue and would have “such problems” if he were elected.