Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Amazon.com    AMZN

AMAZON.COM

(AMZN)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Amazon com : Deal Opens Door to Bigger Footprint in India

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/23/2019 | 03:23am EDT

By Corinne Abrams and Eric Bellman

MUMBAI-- Amazon.com Inc. has signed an agreement that would give it the option to take a significant stake in one of India's largest retailers.

The deal would indirectly give Amazon a stake of around 3.5% in Future Retail Ltd., which runs more than 2,000 stores in 400 cities in Asia's third-largest economy. The agreement--subject to regulatory approval--also includes an option to buy part or all of the 47% stake owned by the retailer's founding family, which includes Chief Executive Kishore Biyani. The deal restricts the time period that the call option can be exercised to a seven-year window, according to a stock-exchange filing.

The initial share purchase and option will cost Amazon close to $200 million, said a person familiar with the deal. The deal could eventually give it access to physical stores across the country.

The bigger stake sale would be dependent on a change in Indian regulations, which restrict many types of foreign direct investment in retail. Complicating matters further, India's states and union territories currently can choose how to apply FDI policy, making the application process cumbersome for foreign companies. Amazon looks to be positioning itself in hopes of a rules change, analysts said.

Amazon's stake in Future Retail comes from its investment arm's acquisition of a 49% stake in Future Coupons Ltd., according to the stock-exchange filing. Future Coupons owns 7.3% of Future Retail. Future Coupons is the digital-payments arm of Future Group.

The investment "provides an opportunity for us to learn global trends in digital payments solutions and launch new products," a Future Group spokesperson said.

The Indian e-commerce market is set to exceed $100 billion by 2022, according to a report from PwC India and the National Association of Software & Services Companies trade group.

Amazon has been seeking to expand in India and has pledged to invest more than $5 billion in the country. It faces tough competition from Walmart Inc.-backed e-commerce site Flipkart and local players such as Reliance Industries, as well as from millions of tiny mom-and-pop stores.

Write to Corinne Abrams at corinne.abrams@wsj.com and Eric Bellman at eric.bellman@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
AMAZON.COM -1.50% 1794.16 Delayed Quote.19.45%
FUTURE RETAIL LTD 1.48% 394.3 End-of-day quote.-22.58%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMAZON.COM
07:16aAfter 'Howdy Modi,' Trump and India's PM could sign trade deal
RE
03:12aWalmart Set to Stop Sales of E-Cigarettes -- WSJ
DJ
09/20HESS, GENERAL MOTORS, AMAZON : Stocks That Defined the Week
DJ
09/20EXCLUSIVE : Fitbit considers whether it should explore a sale - sources
RE
09/20WALMART TO STOP SALES OF E-CIGARETTE : company memo
RE
09/20California's gig worker law could sting 'last mile' delivery
RE
09/20Netflix chief says 'The Crown' will look a bargain after streaming explosion
RE
09/20AMAZON COM : AWS Announces General Availability of Amazon EC2 G4 Instances
BU
09/20A 'Grass-Roots' Campaign to Take Down Amazon Is -2-
DJ
09/20A 'Grass-Roots' Campaign to Take Down Amazon Is Funded By Amazon's Biggest Ri..
DJ
More news
Financials (USD)
Sales 2019 279 B
EBIT 2019 15 137 M
Net income 2019 11 867 M
Finance 2019 34 260 M
Yield 2019 -
P/E ratio 2019 75,6x
P/E ratio 2020 53,4x
EV / Sales2019 3,06x
EV / Sales2020 2,52x
Capitalization 887 B
Chart AMAZON.COM
Duration : Period :
Amazon.com Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AMAZON.COM
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 50
Average target price 2 272,65  $
Last Close Price 1 794,16  $
Spread / Highest target 45,8%
Spread / Average Target 26,7%
Spread / Lowest Target 3,95%
EPS Revisions
Managers
NameTitle
Jeffrey P. Bezos Chairman, President & Chief Executive Officer
Brian T. Olsavsky Chief Financial Officer & Senior Vice President
Patricia Q. Stonesifer Independent Director
Tom A. Alberg Independent Director
Thomas O. Ryder Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AMAZON.COM19.45%887 492
WAYFAIR INC36.27%11 334
ETSY INC26.99%7 277
ZOZO INC25.66%7 023
MONOTARO CO.,LTD.10.84%6 707
B2W COMPANHIA DIGITAL14.32%5 213