Are Amazon stocks viable now considering the ongoing battle with Walmart?

Amazon (AMZN) is planning to open its first large-format retail locations, marking a fresh entrance into the real world and ratcheting up its competition with Walmart (WMT). Is Amazon stock a good investment?
 
CENTRAL, Hong Kong - Jan. 19, 2022 - PRLog -- The 30,000-square-foot Amazon shops, which will open in California and Ohio, are less than one-third the size of traditional Walmart stores. They're roughly a sixth of the size of a Walmart Supercenter. In a struggle for the future of retail, e-commerce, and supermarket shopping, Walmart, the juggernaut of brick-and-mortar discount shops, is pitted against Amazon, the online shopping behemoth. For either firm to win the Amazon vs. Walmart struggle, there is still a lot of work to be done. Walmart must build its internet business while also operating 11,500 stores in 28 countries, including 4,743 in the United States. By the end of 2021, it plans to have 1,000 shops redesigned. Its purpose is to provide customers with a more streamlined and efficient purchasing experience. At the same time, Amazon must continue its rapid expansion of warehouse distribution hubs and choose its physical retail strategy.

Amazon's strong move

In a note, RBC Capital Markets Analyst Brad Erickson wrote, "The critical question from here is when/if does the current investment cycle produce evidence of share gains and margin leverage." "Only time will tell, but we believe AMZN stock is making crucial investments as customers want speedier shipping, which should at the very least preserve share gains while also increasing gross profit dollars."

Colin Sebastian, a Baird analyst, has named Amazon as one of his top internet predictions for 2022. He set a price objective of 4,000 for Amazon shares. In a letter to clients, Sebastian stated, "We believe that worries about slower online retail growth and reduced profits have mostly run their course." "Over the course of 2022, we expect sentiment will improve."

Opportunities to grow

Amazon began 2021 with a lot of room for expansion. This includes ambitions to expand the company's virtual health care service throughout the United States. Its prescription medication business is also growing. Amazon announced last year that its Amazon Care telehealth trial program will be expanded to all of its U.S. employees and their families, as well as other businesses, this summer. The initiative began 18 months ago at the company's Seattle headquarters. The potential for Amazon to power its growth engine — and, by extension, Amazon stock — is huge if it can offer more efficient health care services. Health-care spending now accounts for about a fifth of the US GDP.

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