Amazon (AMZN) Automating Consumption - PiperJaffray

Piper Jaffray analyst, Gene Munster, believes a driving theme in eCommerce over the next 3-7 years will be the rise of automated consumption - the computer-driven purchase decisions of every day essentials - and that Amazon (NASDAQ: AMZN) is already the leader in innovation in the space. Amazon's deepening supplier and manufacture relationships, position in the connected home, scale in fulfillment (including facilities and transportation), and its efforts in private label are all pointing to a very large opportunity for Amazon to become the leader in automated consumption.

No only is Amazon a leader in the space, it is largely the only company focusing on AC at scale. Specifically, Amazon has digital and physical infrastructure components in place.

• Digital: Amazon has 60M-70M Prime subscribers worldwide to freely market to, the brand relationships to integrate technology directly into consumable products, growing customer traction, and the largest SKU selection.
• Physical: Amazon has deepening relationships with product developers who have designed measurement and reorder technology into their product (see page two for a list). Amazon also has one of the largest IoT presences with its widely successful Fire TV, Echo, and expanding assortments of Dash Buttons.

No change to Overweight rating or $800 PT.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $702.80 yesterday.

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