Amazon.com, Inc. (NASDAQ:AMZN) holds dominant positions in retail and cloud computing, but its quest to rule global commerce is far from over.
In fact, one Bernstein analyst this week wrote in a note to clients that Amazon is about to decimate the major players in a number of other industries very soon. CNBC has more details:
“We are currently in the midst of a generational shift in consumer behavior and how companies bring their goods to market,” the firm’s analyst Ali Dibadj wrote in a note to clients Friday.
“The only thing one can be certain about is that things will change and companies will be disrupted, and when it comes to disruption there has never been a company quite like Amazon.”
Dibadj identified the following company types as being the ripest for disruption in coming years: consumer packaged goods, restaurants, transportation, broadline retailers, specialty apparel retail, and healthcare services. Amazon already has its own offerings in several of these areas (snack foods, sportswear, etc.), and is expected to rapidly expand into the others soon.
As for transportation, Dibadj doesn’t see Amazon launching its own shipping service. Instead, he said that “Structural volume growth in e-commerce will benefit the network carriers, and the significant hurdle posed by the costs of last mile delivery is likely to result in better pricing.” In other words, the Amazon effect will simply drive down margins for shippers like UPS and FedEx.
Similarly, he doesn’t expect Amazon to have restaurants of its own. Instead, he sees AMZN creating a national delivery network that will hamper margins as Amazon takes a cut of each transaction.
Amazon.com, Inc. shares rose $3.82 (+0.34%) in premarket trading Tuesday. Year-to-date, AMZN has gained 50.58%, versus a 17.22% rise in the benchmark S&P 500 index during the same period.