Amazon Upgraded to Buy: Dash Cart System Enhances Grocery Shopping

Amazon's Strategic Shift Towards Dash Cart System: A Positive Outlook

On Wednesday, April 3, 2024, Bank of America Securities upgraded its rating on Amazon (AMZN:NASDAQ) to a Buy, despite maintaining a previous recommendation of hold. This adjustment came as Amazon's stock was trading at $180.69, as detailed in a report by StreetInsider titled "BofA Securities Says Amazon.com (AMZN) is 'Still tinkering with grocery: Smart Carts next up'." This change in rating reflects a positive outlook on Amazon's strategic initiatives, particularly in the grocery sector, where the company is making significant technological advancements.

Amazon's decision to phase out its cashierless Just Walk Out technology in favor of the Dash Cart system in its grocery stores is a strategic pivot aimed at enhancing the customer shopping experience. Introduced in 2020, the Dash Cart system utilizes advanced technology, including ceiling-mounted cameras and shelf sensors, to allow customers to track their purchases and spending in real-time. This move addresses the limitations of the Just Walk Out system by providing customers with the ability to monitor their receipts and savings more effectively. While the cashierless technology will no longer be featured in Amazon's grocery stores, it will continue to be a key component of the Amazon Go stores, where it has been well-received by customers.

The shift towards the Dash Cart system is part of Amazon's broader strategy to strengthen its retail presence both online and offline, improve distribution channels, and enhance delivery services. This approach has resonated well with investors, as evidenced by Amazon's stock outperforming the industry with an 18.9% return on a year-to-date basis. The company's financial outlook for 2024 is also promising, with the Zacks Consensus Estimate projecting sales to reach $641.36 billion, marking a year-over-year growth of 11.6%. Furthermore, the consensus estimate for 2024 earnings is set at $4.08 per share, indicating a substantial year-over-year growth of 40.7%. These positive projections are supported by a recent 0.5% upward revision in earnings estimates over the past 30 days, reinforcing Amazon's stable investment outlook as indicated by its Zacks Rank #3 (Hold).

Amazon's financial performance is further highlighted by its efficient use of assets and effective inventory management. The company's asset turnover ratio over the trailing twelve months (TTM) stands at approximately 1.09, demonstrating its ability to generate sales efficiently. Additionally, Amazon boasts an impressive inventory turnover ratio of about 9.15 TTM, showcasing its capability in managing inventory levels relative to sales. The company's operating profit margin of approximately 6.41% TTM reflects its proficiency in converting a portion of its revenue into operating profit.

In its latest quarterly financial statement, Amazon reported significant revenue of roughly $169.96 billion, alongside a cost of revenue amounting to about $92.55 billion and operating expenses totaling approximately $64.05 billion. This resulted in a gross profit of around $77.41 billion. The balance sheet further reveals a current inventory value of approximately $33.32 billion, emphasizing the scale of Amazon's operations. Additionally, the company's investment in property, plant, and equipment net stands at about $276.69 billion, highlighting its substantial commitment to long-term assets and infrastructure. These financial metrics underscore Amazon's robust performance and strategic focus on enhancing its retail and technological capabilities.

Symbol Price %chg
BELI.JK 400 1.5
MAPA.JK 700 0.71
BUKA.JK 125 -0.8
ACES.JK 494 -0.4
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JPMorgan Boosts Amazon Target on Strong Growth Prospects in Cloud and E-Commerce

JPMorgan increased its price target on Amazon (NASDAQ:AMZN) to $240 from $225, reiterating an Overweight rating on the stock. The firm pointed to Amazon’s dominant positions in both e-commerce and cloud computing as key drivers of long-term growth.

Analysts highlighted that e-commerce still accounts for only about 20% of U.S. adjusted retail sales, while just 10% of IT spending has shifted to the cloud—indicating considerable room for expansion in both segments. Amazon Web Services (AWS), which holds an estimated 31% share of the global cloud market, remains a central pillar of profitability.

In the retail space, Amazon’s ability to toggle between first-party and third-party inventory, along with the strength of its Prime ecosystem, gives it flexibility and customer stickiness. The company is also benefiting from high-margin segments like AWS and advertising, which are expected to support ongoing margin and free cash flow growth.

JPMorgan sees Amazon on track to deliver multi-year operating margin expansion in North America and sustained improvements in free cash flow generation.

Amazon (NASDAQ:AMZN) Maintains "Buy" Rating Amid Market Volatility

  • Amazon generates about 80% of its revenue from its e-commerce platform and services like Prime, with the remaining 20% coming from Amazon Web Services (AWS).
  • The stock has experienced a significant decline of over 30% from its peak, currently trading at $171.18.
  • Despite market volatility, Amazon's market capitalization stands at approximately $1.82 trillion, indicating strong investor interest.

Amazon (NASDAQ:AMZN) is a global leader in e-commerce and cloud computing. Known for its vast online marketplace, Amazon generates about 80% of its revenue from selling physical goods and services like Prime. The remaining 20% comes from its cloud computing division, Amazon Web Services (AWS). Despite its high valuation, Bank of America Securities maintains a "Buy" rating for Amazon.

Amazon's stock is currently trading at $171.18, as reported by Benzinga. This comes after a significant decline of over 30% from its peak in early February. The downturn is largely due to concerns over tariff-induced economic weakness affecting the broader market. Despite this, some investors believe the market may be underestimating Amazon's potential.

The stock price today is $171.17, reflecting a 2.30% increase, or $3.85. During the trading day, it fluctuated between $169.37 and $171.26. Over the past year, Amazon's stock has seen a high of $242.52 and a low of $151.61. This volatility highlights the challenges and opportunities in the current market environment.

Amazon's market capitalization is approximately $1.82 trillion, underscoring its significant presence in the global market. Today's trading volume on the NASDAQ is 6,545,944 shares, indicating strong investor interest. Despite being a target for bearish investors, some see this as an opportunity to buy Amazon stock while it is undervalued.

Amazon (NASDAQ:AMZN) Maintains "Buy" Rating Amid Market Volatility

  • Amazon generates about 80% of its revenue from its e-commerce platform and services like Prime, with the remaining 20% coming from Amazon Web Services (AWS).
  • The stock has experienced a significant decline of over 30% from its peak, currently trading at $171.18.
  • Despite market volatility, Amazon's market capitalization stands at approximately $1.82 trillion, indicating strong investor interest.

Amazon (NASDAQ:AMZN) is a global leader in e-commerce and cloud computing. Known for its vast online marketplace, Amazon generates about 80% of its revenue from selling physical goods and services like Prime. The remaining 20% comes from its cloud computing division, Amazon Web Services (AWS). Despite its high valuation, Bank of America Securities maintains a "Buy" rating for Amazon.

Amazon's stock is currently trading at $171.18, as reported by Benzinga. This comes after a significant decline of over 30% from its peak in early February. The downturn is largely due to concerns over tariff-induced economic weakness affecting the broader market. Despite this, some investors believe the market may be underestimating Amazon's potential.

The stock price today is $171.17, reflecting a 2.30% increase, or $3.85. During the trading day, it fluctuated between $169.37 and $171.26. Over the past year, Amazon's stock has seen a high of $242.52 and a low of $151.61. This volatility highlights the challenges and opportunities in the current market environment.

Amazon's market capitalization is approximately $1.82 trillion, underscoring its significant presence in the global market. Today's trading volume on the NASDAQ is 6,545,944 shares, indicating strong investor interest. Despite being a target for bearish investors, some see this as an opportunity to buy Amazon stock while it is undervalued.

Raymond James Lowers Amazon Rating Amid Growing EBIT Concerns and Tariff Headwinds

Amazon.com (NASDAQ:AMZN) shares fell nearly 2% pre-market today after Raymond James downgraded the company from Strong Buy to Outperform and cut its price target to $195 from $275, citing rising near-term margin risks and a cloudier investment return timeline. While the firm remains positive on Amazon’s long-term AI and infrastructure initiatives, it believes the market is underestimating the potential EBIT pressure for 2025 and 2026.

Analysts highlight that Amazon’s exposure to China—accounting for roughly 30% of GMV and 15% of ad revenue—along with its dependence on U.S. rural delivery services, could create drag as the company diversifies its supply chain and logistics network in response to macro uncertainty and new tariff threats.

While long-term fundamentals remain intact, the report suggests other names like Meta, Uber, and MercadoLibre offer clearer ROI visibility and near-term catalysts, prompting the shift in recommendation.

Raymond James Lowers Amazon Rating Amid Growing EBIT Concerns and Tariff Headwinds

Amazon.com (NASDAQ:AMZN) shares fell nearly 2% pre-market today after Raymond James downgraded the company from Strong Buy to Outperform and cut its price target to $195 from $275, citing rising near-term margin risks and a cloudier investment return timeline. While the firm remains positive on Amazon’s long-term AI and infrastructure initiatives, it believes the market is underestimating the potential EBIT pressure for 2025 and 2026.

Analysts highlight that Amazon’s exposure to China—accounting for roughly 30% of GMV and 15% of ad revenue—along with its dependence on U.S. rural delivery services, could create drag as the company diversifies its supply chain and logistics network in response to macro uncertainty and new tariff threats.

While long-term fundamentals remain intact, the report suggests other names like Meta, Uber, and MercadoLibre offer clearer ROI visibility and near-term catalysts, prompting the shift in recommendation.

Amazon's Expanding Ad Empire Keeps It Ahead of the Pack, Wedbush Maintains Outperform

Wedbush reiterated its Outperform rating on Amazon.com (NASDAQ:AMZN) and maintained its $280 price target, highlighting the company's growing dominance in the digital advertising space.

Amazon is steadily gaining momentum with advertisers, thanks to its unmatched retail infrastructure, extensive customer data, and powerful merchandising tools. The firm noted that recent upgrades to Amazon’s Demand-Side Platform (DSP) have made it a more formidable competitor, particularly in comparison to key players like The Trade Desk.

Another key development is the ad-supported rollout of Prime Video, which has opened up a new stream of revenue. Over the past year, this move has successfully attracted advertising dollars—not only from other digital platforms but also from traditional linear TV budgets—thanks to Amazon’s reach, targeting precision, and wealth of first-party consumer data.

Wedbush believes these advancements solidify Amazon’s position as a top-tier player in digital advertising, with substantial room for further growth. The firm sees the advertising segment as a strategic engine of margin expansion and a core component of Amazon’s broader monetization strategy.

Amazon's Expanding Ad Empire Keeps It Ahead of the Pack, Wedbush Maintains Outperform

Wedbush reiterated its Outperform rating on Amazon.com (NASDAQ:AMZN) and maintained its $280 price target, highlighting the company's growing dominance in the digital advertising space.

Amazon is steadily gaining momentum with advertisers, thanks to its unmatched retail infrastructure, extensive customer data, and powerful merchandising tools. The firm noted that recent upgrades to Amazon’s Demand-Side Platform (DSP) have made it a more formidable competitor, particularly in comparison to key players like The Trade Desk.

Another key development is the ad-supported rollout of Prime Video, which has opened up a new stream of revenue. Over the past year, this move has successfully attracted advertising dollars—not only from other digital platforms but also from traditional linear TV budgets—thanks to Amazon’s reach, targeting precision, and wealth of first-party consumer data.

Wedbush believes these advancements solidify Amazon’s position as a top-tier player in digital advertising, with substantial room for further growth. The firm sees the advertising segment as a strategic engine of margin expansion and a core component of Amazon’s broader monetization strategy.