Category Archives: nasdaq

Amazon’s Push Into Business E-Commerce An $18 Billion Opportunity?

Amazon ( AMZN ) is pushing deeper into business-to-business e-commerce, which one analyst estimates could add $18 billion in company revenue by 2020. The B2B unit, Amazon Business , began as Amazon Supply in 2012. The initiative was rebranded in April 2015 and Amazon — which posted 2015 revenue of $107 billion — recently indicated it reached more than $1 billion in annual sales, with 300,000 customers. Bank of America Merrill Lynch analyst Justin Post estimates Amazon Business will reach gross merchandise volume of $3.5 billion this year, resulting in revenue of $3 billion. He anticipates GMV of $8 billion next year and revenue of $6.4 billion. By 2020, estimates Post, Amazon will hit GMV of $25 billion and $18.6 billion in revenue. “Based on recent management comments, Amazon Business appears to be ready for prime time, and we wouldn’t be surprised if Amazon invests in marketing to raise awareness as Amazon’s procurement systems improve,” said Post in a research note. According to market research firm Frost & Sullivan, the U.S. B2B market is expected to reach $1 trillion in sales by 2020, and $6.7 trillion globally. “We think B2B provides significant runway for growth, which could help Amazon sustain its growth rates and premium valuation for many years,” wrote Post. He has a buy rating on Amazon stock, and a price target of 840. Amazon stock was near 705, up more than 1%, in afternoon trading in the stock market today , after touching a record high above 722 on May 12. It’s an IBD Leaderboard stock. Amazon Business sells a broad line of goods, such as office supplies, tools, industrial equipment, tractor equipment and office products. Competitors in the B2B e-commerce sector include Staples ( SPLS ), HD Supply Holdings ( HDS ), Office Depot ( ODP ), Grainger ( GWW ) and Fastenal ( FAST ).

Will Apple iPhone 7 Sell, With Bigger Upgrade Coming Next Year?

Apple ( AAPL ) shares have gotten a lift this week on reports of higher-than-expected production orders for the upcoming iPhone 7. But Wall Street is starting to wrestle with worries that iPhone users might skip that modest upgrade and wait for next year’s expected radical redesign. The iPhone 7, likely to be released in September, is expected to look much like the current iPhone 6S series, but with a thinner body, faster processor and better camera. It also could be the first waterproof iPhone. But next year’s iPhone 8 is rumored to use an OLED display, which offers richer colors, darker blacks and lower power consumption. OLED displays also are thinner than LCD screens and are flexible, allowing new design options. The iPhone 8 could feature an all-glass, curved screen design. It might even eliminate the physical home button in favor of the pressure-sensitive screen, according to tech news reports. Universal Display ( OLED ) stock climbed to a record high Tuesday on the iPhone 8 speculation. Universal Display is a key supplier of technology and materials for OLED displays. Universal Display climbed as much as 5.8% to 64.83 in intraday trading on the stock market today . In afternoon trading, it was up 5%, near 64.50. Apple shares were up 1.4%, below 98, in afternoon trading Tuesday. Semiconductor equipment manufacturer Applied Materials ( AMAT ) also is benefiting from interest in OLED. Last week, Applied Materials said its Q2 display orders rose a whopping 483%, driven by demand for machines used to manufacture OLED displays. With rumors rampant about the iPhone 8, smartphone users looking to upgrade will have to decide whether to get a more traditional-looking iPhone 7 or hold out for the revamped iPhone 8. Consumers Won’t Skip iPhone 7 Upgrade: Wells Fargo Wells Fargo Securities analyst Maynard Um said in a research report Monday that he doesn’t believe next year’s iPhone will hold back upgrades during the iPhone 7 cycle. “While it is reasonable to assume Apple may introduce an iconic iPhone in 2017, we believe it is not a foregone conclusion that the consumers will skip the iPhone 7 upgrade in 2016,” Um said. “The core of our premise revolves around continued competition for subscribers as two-year contracts come up for renewal.” If wireless carriers continue to run aggressive promotions to reduce subscriber churn and to attract new customers coming off two-year contracts, there may be strong incentives for people to upgrade, Um said. Um has an outperform rating on Apple stock, with a fair value of 120 to 130. Despite encouraging iPhone 7 production reports , UBS analyst Steven Milunovich is cautious. He recently lowered his iPhone forecast to unit growth of 2% for fiscal 2017, down from 4% previously. Apple’s fiscal 2017 starts on Sept. 25. For fiscal 2018, during the iPhone 8 cycle, he expects unit sales growth of 15%. Milunovich rates Apple stock as buy, with a 12-month price target of 115. “A lack of differentiation in the iPhone 7 will cause the upgrade cycle to lengthen,” he said in a report. “Although it’s possible that Apple has a ‘gee-whiz’ upgrade in store for the iPhone 7, the absence of leaks makes it unlikely.” RELATED: Universal Display Spikes On iPhone OLED Prospects Apple Begins Retail Refresh With San Francisco Store