Amazon.com Inc has established a larger local store and marketplace in Singapore, Reuters reported, as the e-commerce company seeks to expand its product selection and step up competition with rivals, including Alibaba Group Holding Ltd’s Lazada and Sea Ltd’s Shopee.
Amazon shares closed lower for a second consecutive trading session on NASDAQ on Tuesday. It has also been the steepest daily loss since September 26th. The stock went down 1.57% ($27.15) to $1,705.51, after touching an intraday low at $1,705.07, or a price level not seen since October 3rd ($1,685.06).
Shares of Amazon.com Inc have surged 13.55% so far in 2019 compared with a 15.41% gain for the benchmark index, S&P 500 (SPX).
In 2018, Amazon’s stock went up 28.43%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
The e-commerce giant also said that small and medium-sized businesses would be allowed to offer their products to on-line shoppers through Amazon.sg.
“With Amazon.sg, we want to provide what customers have been asking us for: the ability for everyone to shop on desktop and mobile, more local and international selection from Amazon and trusted sellers, paired with fast and reliable delivery,” Henry Low, Amazon Singapore country manager, said in a statement, cited by Reuters.
Lazada, similar to other e-commerce companies, operate mostly through a marketplace model in Singapore.
Analyst stock price forecast and recommendation
According to CNN Money, the 42 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $2,262.50, with a high estimate of $2,615.00 and a low estimate of $2,080.00. The median estimate represents a 32.66% upside compared to the closing price of $1,705.51 on October 8th.
The same media also reported that at least 43 out of 47 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 4 – as “Outperform”.