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Amazon Enters ‘New World’ with Latest Gaming Push By TipRanks


© Reuters. Amazon Enters ‘New World’ with Latest Gaming Push

Amazon (NASDAQ:) is a technological disruptor that investors would be unwise to bet against.

Amazon has revolutionized the retail industry and will continue to make significant investments in its logistics infrastructure.

In fact, intraday and last-mile shipping are two of the most important frontiers in ecommerce. Andy Jassy is a new Amazon CEO. He can also make a mark in e-commerce and Amazon Web Services. Amazon has had great success in expanding into new areas and bringing its Prime customers with it.

Prime Video (NASDAQ:) is undoubtedly a formidable Netflix (NASDAQ;) competitor. It may even surpass Netflix as it seeks to channel more money into its content. (See AMZN stock charts on TipRanks)

Amazon isn’t just stopping at video, though. Amazon will do anything to get a share in a market that is rich in growth and ready for disruption. Gaming is a hot topic these days. This is a bigger opportunity than video and, arguably, a more risky endeavor.

Amazon is well-positioned to impact the sector with Twitch, a game streaming platform, and Luna, a cloud-gaming platform.

Amazon Gaming could be the ‘AWS of Gaming Industry’

After extensive beta testing, Amazon’s multiplayer online role-playing (MMORPG), “New World”, launched September 28. Amazon may have made a major impact on the gaming market by creating the ambitious title. It embraces the buy-to-play business model and is likely to be Amazon’s first big hit in this space.

The early signs are promising with 650,000 players concurrently on Day 1. Although there were many positive reviews of the service, players expressed frustration at long waits and overwhelmed servers. Amazon responded by promising free server transfers.

What is the real question? Can this MMO continue to grow and monetize so that it can become an AMZN stock-mover? At the moment, “New World,” the hugely popular MMO may only be a drop in the ocean for the company worth nearly $1.7 billion.

Wall Street’s Take

According to TipRanks’ consensus analyst rating, AMZN stock comes in as a Strong Buy. There are 31 unanimous Buy recommendations out of the 31 analyst ratings.

As for price targets, the average AMZN price target is $4,214.47. Price targets of analysts can range between a low $3,775 per Share and a high $5,000 Per Share.

Disclosure: Joey Frenette held shares in Amazon at the time this article was published.

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