The Fly

Buy with Prime could be $3.5B-plus EBIT business for Amazon, says Morgan Stanley

Morgan Stanley analyst Brian Nowak said the firm’s base model shows that every 2% increase in U.S. adoption of Buy with Prime could add about $1B of annual EBIT and in a bull case with scale efficiencies and more volumes this could be a $3.5B-plus EBIT business. Competitive dynamics matter, said the firm, which notes that sellers will have the choice between using Buy with Prime, Shopify (SHOP) Fulfillment or coordinating their own shipping through UPS (UPS), FedEx (FDX) or otherwise, but Buy with Prime shipping is priced competitively against peers while also offering the fastest delivery, the firm added. Morgan Stanley has an Overweight rating and $140 price target on Amazon (AMZN) shares.

Published first on TheFly

See Insiders’ Hot Stocks on TipRanks >>

Read More on AMZN:

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More