Why Amazon’s World Domination May Come Sooner Than You Think
Loading the player… Amazon ( AMZN ) has solidified its position as an e-commerce leader, and its global takeover may happen sooner than you think. ‘Momentum’ Seen In Apparel A Cowen & Co. report out Wednesday forecasts Amazon displacing Macy’s ( M ) as the No. 1 U.S. apparel retailer by 2017, driven by selection, fulfillment and brand relationships. Amazon’s momentum in apparel is also seen leading to retailer mergers and acquisitions, as well as store closures. Cowen also projects that Amazon will displace Target ( TGT ), Walgreens ( WBA ) and CVS ( CVS ) to become the No.2 company in consumables, behind Wal-Mart ( WMT ), by 2018. The report calculates a compound annual growth rate of 27% for the e-commerce giant’s consumables market. Amazon Worth $3 Trillion? Meanwhile, Social Capital has set a very bullish $3 trillion, 10-year valuation on the stock, with the venture capital firm citing strength across retail and its Amazon Web Services segment. Amazon’s current market cap is about $314 billion, while Apple — the most valuable public company — has about a $515 billion market cap. IBD’s take: How does Amazon stack up vs. its peers? Find out at IBD Stock Checkup After gapping up on its strong earnings report last week, shares are now extended 10% from a cup-with-handle buy point initially cleared in mid-April. The stock is trading about 5% below its all-time high reached at the end of last year, and it was down 1.4% Thursday. Wal-Mart, Macy’s Stocks Lag Meanwhile, Wal-Mart recently plunged below its 50-day line and has yet to retake that level, as it slumped 0.6% in intraday trade. Shares are sitting 16% below their 52-week peak. And Macy’s shares are trading nearly 50% below their all-time high reached last July. They are on track to hit a nearly four-month low Thursday, falling 2.3%.