Amazon (NASDAQ:AMZN) says it's a great long-term investment idea and is poised to lead the evolving e-commerce space. JP Morgan Analyst doug unmas.
what happened: Anmuth predicts that U.S. e-commerce penetration could double to more than 40%.
Recently released fourth quarter (Q4) US e-commerce spending data shows a commendable year-over-year growth of +7.2%. This highlights the stability of online growth trends.
This analysis highlights a strong upward trend in U.S. e-commerce penetration, reaching 23.3% of adjusted retail sales in Q4, the sixth consecutive quarter of +84bps year-over-year growth. I'm doing it.
Also read: Track your holiday spending online with deep discounts and 'buy now, pay later' deals
Amazon proved its power in the fourth quarter with a 46.4% market share, Anmas said. The company has achieved stock price growth of over 100bps year-on-year for six consecutive quarters. The record-breaking event solidified Amazon's position as an industry leader.
Ammuth expects Amazon's e-commerce growth to accelerate in 2024, forecasting +8.1% year-over-year growth. Therefore, in 2023, Amazon outperformed the industry's +7.6% YoY growth.
Amazon currently aims to increase its share of adjusted retail sales to 22.9% in 2024 (+112bps YoY), driven by growth in less-penetrated categories.
“The best idea”
Mr. Anmas also highlighted Amazon as the “best idea” for a long-term investment. He highlighted the company's resilience, strategic focus and innovative initiatives in this regard.
Beyond traditional e-commerce, he highlighted Amazon's foray into connected TV as a growth catalyst and in line with broader streaming trends for sustained growth and future revenue streams.
JPMorgan sees the future of U.S. e-commerce as full of opportunity, with Amazon leading the way.
As e-commerce penetration accelerates, potentially doubling to more than 40%, Amazon's strategic positioning and solid performance make it a classic 'best choice' for investors looking for long-term success. “Idea”.
Read next: Amazon's inclusion in the Dow stock: Will the stock anchor reflect Apple, Microsoft and Intel, or will it signal a bullish market?
Image: Shutterstock
