Amazon (AMZN) Launches NFT Marketplace and 15 Collectibles – March 8, 2023
Amazon (AMZN – Free Report) continues to explore uncharted territories to increase growth prospects. This is evident from the recent interest in non-fungible tokens (NFT).
The company is reportedly set to launch its NFT marketplace next month and list 15 NFT collectibles on it.
Customers will be able to purchase fashion-oriented NFTs, which will be linked to physical clothing such as jeans, sneakers and sweatshirts. The underlined digital platform will focus on blockchain-based gaming, which will enable users to earn NFTs.
Customers will be able to purchase collectibles through their Amazon accounts using a debit or credit card.
The purchased collectibles will then be transferred directly to the customer’s NFT account.
Initially, the collectibles will be available to customers in the United States. Eventually, the marketplace will be expanded outside the country.
With the latest move, Amazon aims to provide an improved experience to NFT enthusiasts.
The move will strengthen the e-commerce giant’s prospects in the booming NFT market as well as the blockchain space.
NFT keeps its promise
The NFT market is booming on the back of the growing spread of blockchain technology and increasing demand for digital artwork.
According to a report by Statista, NFT market revenue is expected to reach $3.5 billion in 2023. The figure is likely to reach $8.1 billion by 2027, with a CAGR of 22.8% between 2023 and 2027. The NFT user base will likely to reach 64.4 million by 2027.
According to a report by MarketsandMarkets, the size of the underlined market is likely to reach $13.6 billion by 2027, with a CAGR of 35% between 2022 and 2027.
A Research and Markets report indicates that the NFT market is expected to witness a CAGR of 37.1% between 2022 and 2028. The market usage value is likely to reach $278.5 billion by 2028.
We believe that Amazon is well positioned to capitalize on the above growth prospects on the back of its latest NFT initiative.
AMZN Ups Game Against EBAY
In particular, the e-commerce giant increases the level of competition for eBay (EBAY – Free Report), which has made a concerted effort to strengthen its presence in the NFT space.
eBay’s acquisition of KnownOrigin remains a big positive. In particular, KnownOrigin is equipped with robust technology that enables creators to create authentic digital collectibles in the form of NFTs.
The acquisition of TCGplayer, a marketplace for trading card game enthusiasts, is noteworthy.
EBAY’s partnership with OneOf, a green NFT company, to release a series of exclusive NFTs increased its presence in the collector domain.
EBAY’s introduction of eBay Vault, a digital marketplace for single and top grade trading cards, is another positive.
Zacks Rank and Stocks to Consider
Currently, Amazon has a Zacks Rank #3 (Hold).
Some better rated stocks in the retail-wholesale sector are Ulta beauty (ULTA – Free report) and AutoNation (AN – Free Report) , each currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ulta Beauty has gained 40.9% over a year. The long-term earnings growth for ULTA is estimated at 13.75%.
AutoNation has gained 27.6% over the course of a year. The long-term earnings growth for AN is estimated at 3.54%.
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