It’s been little secret that Amazon has dominated the e-tail space—the retailer generated nearly 36 percent of all online sales on Black Friday alone— and this year Amazon is expected to account for more than half of all e-commerce growth.
As Macquarie Research said in a note Tuesday, for every $1 of e-commerce growth, Amazon will likely take $0.51, and for every $1 of adjusted retail growth, Amazon will take $0.24.
“Think about the inverse of that: Every other retailer is fighting for $0.49 and $0.76 of each dollar, respectively,” Macquarie wrote.
The firm raised its price target for Amazon’s shares from $740 to $760.
Macquarie said Amazon has its Prime membership to thank for its gains. The retailer’s $99 a year membership that promises free two-day shipping now reaches roughly 25 percent of American households, and that number is expected to jump to 50 percent by 2020.
“While 2015 saw Amazon’s stock appreciate 114 percent in large part based on Amazon Web Services, we believe that Prime will lead to more gains in 2016,” Macquarie’s note said.