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Amazon (AMZN) to Launch NFT Marketplace & 15 Collectibles

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Amazon (AMZN - Free Report) continues to explore uncharted territories in order to boost its growth prospects. This is evident from its latest interest in non-fungible tokens (NFTs).

Reportedly, the company is set to launch its NFT marketplace next month and enlist 15 NFT collectibles on it.

Customers will be able to purchase fashion-oriented NFTs, which will be linked to physical clothing like jeans, trainers and sweatshirts. The underlined digital platform will focus on blockchain-based gaming, which will enable users to earn NFTs.

Customers will be able to buy collectibles through their Amazon accounts by using debit or credit cards.

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 enhanced experience to NFT enthusiasts.

The move will bolster the e-commerce giant’s prospects in the booming NFT market, as well as the blockchain space.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

NFT Holds Promise

The NFT market is booming on the back of the growing proliferation of blockchain technology and increasing demand for digital artwork.

Per a report from Statista, revenues in the NFT market are expected to reach $3.5 billion in 2023. The figure is likely to hit $8.1 billion by 2027, seeing a CAGR of 22.8% between 2023 and 2027. The NFT user base is likely to reach 64.4 million by 2027.

According to a report from MarketsandMarkets, the size of the underlined market is likely to reach $13.6 billion by 2027, witnessing a CAGR of 35% between 2022 and 2027.

A Research and Markets report indicates that the NFT market is expected to see a CAGR of 37.1% between 2022 and 2028. The spend value in the market is likely to hit $278.5 billion by 2028.

We believe, Amazon is well-poised to capitalize on the above-mentioned growth prospects on the back of its latest NFT initiative.

AMZN Ups Game Against EBAY

Notably, the e-commerce giant ups the competition level for eBay (EBAY - Free Report) , which has been making concerted efforts to bolster its presence in the NFT space.

eBay’s buyout of KnownOrigin remains a major positive. Notably, KnownOrigin is equipped with robust technology that enables creators to make authentic digital collectibles in the form of NFTs.

Its acquisition of TCGplayer, which is a marketplace for collectible card game enthusiasts, is noteworthy.

EBAY’s partnership with OneOf, a green NFT company, to release a series of exclusive NFTs, boosted its presence in the collectible domain.

EBAY’s introduction of eBay vault, which is a digital marketplace for single and top-graded trading cards, is another positive.

Zacks Rank & Stocks to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the retail-wholesale sector are Ulta Beauty (ULTA - Free Report) and AutoNation (AN - Free Report) , each currently carrying 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 rate for ULTA is projected at 13.75%.

AutoNation has gained 27.6% over a year. The long-term earnings growth rate for AN is projected at 3.54%.


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