Although Amazon's (NASDAQ: AMZN) offline businesses are also looking excellent at the moment, most consumers and investors only think of the company as an online retailer.
At least that's what one stock-tracking analyst thinks; in a recent research note, he restated his positive stance on the stock. If he had his way, the price of this investment could rise by 10% in the next year.
The end is near for Just Walk Out. Fresh, Amazon's brick-and-mortar retail brand, made Bank of America Securities' Justin Post write an update on the company. The business verified rumors in early April that it is indeed retiring the Just Walk Out system from its U.S. Fresh locations.
Yes, customers can really leave stores without paying for their purchases; the equipment behind the business scans the items and charges the customer's connected card.
In such cases, shoppers will no longer use Just Walk Out but rather Dash Carts, which are equipped with technology that lets them scan things and track their expenditure on an in-cart screen.
The Washington Post reported that the change "is part of the broader push to revamp Fresh locations with more customer-friendly features like brighter colors and coffee shops, as opposed to the possibly 'online first' design of Amazon's previous locations."
There will be a "significant grocery investment cycle," according to the researcher. He thinks the Dash Carts are a great way to increase the company's ad revenue.
Still not a big deal Post maintained his price target for Amazon shares at $204 per share and restated his recommendation to buy in his research report. I agree with him that there's no need to change anything, especially because the Fresh outlets aren't going to be a major moneymaker or drain for a long time. Aside from the formidable Amazon Web Services cloud division, there are a plethora of other reasons to own Amazon stock.
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