Amazon shares close little changed on Wednesday, e-commerce giant reportedly discussing stake purchase in Go-Jek Group

August 29, 2019 7:29 am

According to a Wednesday report by Reuters, citing a person with knowledge of the matter, Amazon.com Inc (AMZN) is in early talks with Indonesia’s Go-Jek Group to acquire a stake in the ride-hailing startup firm.

However, financial details were not disclosed.

Amazon shares closed higher for the sixth time in the past eleven trading sessions on NASDAQ on Wednesday. The stock edged up 0.14% ($2.42) to $1,764.25, after touching an intraday low at $1,745.51, or a price level not seen since August 26th ($1,743.51).

Shares of Amazon.com Inc have surged 17.46% so far in 2019 compared with a 15.20% gain for the benchmark index, S&P 500 (SPX).

In 2018, Amazon’s stock went up 28.43%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

Founded in 2011, Go-Jek Group offers up to 20 services, as the company has evolved from ride-sharing one to one enabling its clients to pay on-line and order items ranging from food to groceries.

In July, Go-Jek raised as much as $10 billion, with key investors including Alphabet Inc’s Google, Visa Inc, Alibaba Group Holdings Inc and Tencent Holdings Ltd.

Meanwhile, earlier in 2019, Amazon acquired a stake in Deliveroo, a British on-line food delivery firm, amid fierce competition from Uber Technologies Inc’s Uber Eats in the takeaway meal market.

Analyst stock price forecast and recommendation

According to CNN Money, the 42 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $2,250.00, with a high estimate of $2,615.00 and a low estimate of $2,080.00. The median estimate represents a 27.53% upside compared to the closing price of $1,764.25 on August 28th.

The same media also reported that at least 42 out of 47 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 1 – as “Hold”.

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