Amazon Expands Into the Auto Parts Industry
Amazon.com has been a dominant force in the markets for the past few years. This giant has been competing with the likes of Wal-Mart and Target, but now Amazon has set its sights on expanding into auto parts sales.
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[cnxvideo id=”507121″ placement=”ros”]Amazon.com Inc. (NASDAQ: AMZN) has been a dominant force in the markets for the past few years. This giant has been competing with the likes of Wal-Mart and Target, but now Amazon has set its sights on expanding into auto parts sales.
Recently, Amazon has made deals with the largest auto parts makers in the United States, which could have implications for companies in the space. At this point the majority of large auto parts suppliers are selling to Amazon.
Auto parts retailers stand to suffer the most from Amazon, such as Advance Auto Parts Inc. (NYSE: AAP), AutoZone Inc. (NYSE: AZO), Genuine Parts Co. (NYSE: GPC) and O’Reilly Automotive Inc. (NASDAQ: ORLY).
Just this past September, Jefferies issued a report saying that Amazon was offering same-day delivery for auto parts in 40 major U.S. cities. Not only this, but also, the firm noted that the prices were on average 23% less than these major chains.
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It seems to be only a matter of time before Amazon puts a stranglehold on this industry.
Shares of Amazon were trading at $811.40 on Monday, with a consensus analyst price target of $929.10 and a 52-week trading range of $474.00 to $847.21.
Advance Auto Parts was trading down about 3% to $166.29. Its consensus price target is $177.14, and the 52-week range is $131.59 to $177.83.
AutoZone shares were down nearly 5% to $732.96, with a consensus price target of $878.59 and a 52-week range of $681.01 to $819.54.
Shares of Genuine Parts were last seen down 3% to $96.60. The consensus price target is $98.33. The 52-week range is $79.02 to $105.97.
O’Reilly was down 3.5% to $264.36, with a consensus price target of $307.18 and a 52-week range of $226.51 to $292.84.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
