According to Needham & Company, an investment banking firm, Amazon’s potential growth is skyrocketing. The retail giant’s stock was raised from “hold” to “buy” on Monday, with its price target being set at $1100 USD.
Kerry Rice, an analyst for Needham, notes that Amazon’s Prime service, mobile penetration, and third-party growth make its current market domination sustainable. The company notes that as of now, Amazon has about 34 per cent share in the U.S. online retail market, based on gross merchandise volume.
What’s more, Needham predicts that by 2021, this number will increase 16 per cent, making up 50 per cent of the online market.
Amazon’s closest competitors include Ebay, with 7.7 per cent of the market share, and Wal-Mart, with under 5 per cent.
In 2015, National Jeweler estimated that Amazon sold $640 million in watch and jewellery sales in North America. With this type of growth, jewellers and watch retailers must keep an eye out for this major player—either e-commerce or bricks-and-mortar sales strategies must be stepped up in order to compete.
