Amazon (AMZN) app will now be more powered as TikTok and Pinterest will soon enable buying from the online retailer in-app, an Amazon spokesperson tells Bloomberg. A note from Bank Of America Securities weighs in on the news reiterating its Buy rating on Amazon.
Market Domination anchors Josh Lipton and Madison Mills break down the latest development for Amazon and what it means for all of these companies moving forward.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Nicholas Jacobino
Video Transcript
Let’s get to our calls of the day, Tik Tok and Pinterest will reportedly enable buying from Amazon in their apps.
Bank of America Security is publishing a new note on the news, maintaining its buy rating on Amazon and Josh.
What fascinated me about this note is that I I was on the Amazon call this quarter in the last quarter.
And both times executives were receiving a slew of questions about competition from Sheen and Tina specifically and trying to figure out when Amazon was going to release more information about partnerships with those retailers that are certainly fast fashion, but also very affordable for consumers.
And so that’s very much so a headwind for Amazon.
And then on top of it, you lay on Tik Tok shop which has not only the competitive factor of products, but also the sellers who are flocking from Amazon to tiktok shop because they’re making a heck of a lot more revenue by selling products on Tik Tok.
And so it’s interesting, see what this could look like moving forward.
And if it is going to be the next big uh upside move for Amazon in terms of its e commerce business because there is such a strong demand from the consumer for these more affordable brands.
Yeah, team at Bank of America weighed in they seem to like these deals.
They said if the deal improves rois by 20% estimate, an opportunity for an additional 1 billion out of GMV.
Uh they said it could aid sentiment on concerns around Tik Tok shop competition.
Um Obviously, Bank of America is a buy on the name Amazon could use some love.
I mean, year to date, the stock is up about 10% but it’s down about 15% from its record close.
And the company of course, did recently report earnings results and projected that weaker than expected revenue growth and investors were were obviously disappointed.
Yeah, and that certainly weigh on the stock following that earnings print, as you mentioned, Josh.
