"In 2017, most retailers felt the pain of Amazon’s dominance, and investors watched as the rest of the retail sector barely squeaked out positive performance. The consensus is that this pattern continues in 2018 and rewards Amazon with another year outperforming retail peers. But could the market be surprised?" the firm wrote in a note highlighting possible 2018 surprises.
7 shock-worthy facts about Amazon:
7 shock-worthy facts about Amazon
7 shock-worthy facts about Amazon
7.5 percent of Seattle's working-age population are Amazon employees
Amazon has more than 300,000 employees worldwide, and 40,000 in Seattle alone.
As a portion of the city's working-age population — roughly 528,000 — that comes out to 7.5% of the city working at Amazon.
For perspective, if the same portion of New York City's adults worked for one company, that company would have about 488,000 locals on staff.
Amazon accounts for 43% of all online sales
Amazon used to be a way to buy books online; today, it's the default buying site for just about everything, especially for people who have Amazon Prime.
An analysis by Slice Intelligence released in February found that 43% of all US online retail sales were done through Amazon in 2016.
That's up from 33% in 2015 and 25% in 2012.
1 out of every 4 US adults has Amazon Prime.
Speaking of Amazon Prime, the company now counts approximately 63 million people among its subscriber base, or about 25% of the total US adult population.
That number may underestimate the true coverage, however, since it doesn't account for multiple adults in one household all sharing the same Prime account.
Amazon ships 1.6 million packages a day
Amazon fulfillment is a beast of its own.
A report from 2013 (the latest year for which data are available) found Amazon shipped 608 million packages that year, or 1.6 million packages a day.
As of 2015, Amazon estimated its fulfillment centers were within 20 miles of 31% of the US population, and within 20 miles of 50-65% of its core, same-day-accessible market.
That's enough cardboard to span all of West Virginia
“The success certain [electronics and luxury] retailers are having should at some point be more widely recognized. Coupled with the already high level of ownership and lofty valuation, we wouldn’t be surprised to see Amazon underperform these other retailers next year.”
Amazon is one of the most popular stocks for both retail investors and institutional holders alike. Bank of America said this week that the stock is one of the most overowned on Wall Street, with a relative weight of 1.77 and 50.5% of actively managed funds holding shares. It’s also the most popular stock on Stockpile, an app that lets users — most of which are millennials — buy fractional shares of expensive companies.
To be sure, Wall Street consensus is that Amazon still has plenty of room to run. Analysts polled by Bloomberg have an average price target of $1,298 — that’s another 11% above Wednesday afternoon's share price of $1,169. Bernstein declined to disclose its own price target for the Amazon.
"We are by no means implying that these events are likely, and they are certainly not our base case forecast," Bernstein said.
"But we constantly think about these and other surprises in our “what-if” scenarios, knowing that the market tends to throw curve balls. Keeping potential unexpected events in mind helps ensure we are not left staring like a deer in headlights."