Amazon Enters GLP-1 Drug Market, Competing with Pharma Giants
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Should l Buy AMZN?
Source: Fool
- Intensifying Market Competition: Pharmaceutical giants Eli Lilly and Novo Nordisk are competing in the GLP-1 drug space, particularly as Novo Nordisk is set to regain market share by launching the oral version of Wegovy in 2026, which could shift overall market dynamics.
- Amazon's Market Opportunity: Amazon has begun selling the oral version of Wegovy, with monthly costs as low as $25 for insured customers and $149 for uninsured ones, positioning itself to capture significant retail market share due to its vast customer base and convenient purchasing options.
- Shifting Consumer Preferences: The introduction of oral GLP-1 drugs is expected to encourage more consumers to try these medications for weight loss, driving overall demand and benefiting all companies involved in this sector.
- Impact on Competitive Landscape: Companies like Hims & Hers, WW International, and GoodRx face tough competition, especially as GLP-1 drugs gain popularity; Amazon's 200 million Prime members provide it with a substantial advantage in the e-commerce space, potentially leading to a decline in market share for other competitors.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 232.990
Low
250.00
Averages
294.69
High
340.00
Current: 232.990
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-term Growth Prospects: Despite the challenges posed by tariffs, Amazon still possesses strong long-term growth potential, with a robust business model and solid cash flow that position it well to navigate economic slowdowns.
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See More
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- Rising Uncertainty: Despite the selloff, trader Peter Tuchman noted that the reasons behind the decline in U.S. equities remain unclear, potentially linked to geopolitical tensions, earnings pressures, and AI-related uncertainties, as the market faces a “quandary.”
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- Analyst Perspectives: Despite the bearish market sentiment, Wall Street analysts overwhelmingly recommend buying into Big Tech stocks, indicating confidence in the sector's long-term prospects, particularly for Amazon and Alphabet, which retail sentiment considers extremely bullish.
See More
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- Partnership with Nvidia: Alphabet identified Nvidia as a key partner and one of the first to access Nvidia's new Vera Rubin GPU platform, underscoring that despite challenges from companies like Alphabet, hyperscalers remain heavily dependent on Nvidia's hardware.
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See More
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- Strong Cloud Growth: Amazon Web Services (AWS) reported a 24% sales growth to $35.6 billion in the most recent quarter, exceeding analysts' expectations, indicating robust performance under high demand, although growth was constrained by capacity limitations.
- Confidence in AI Investments: CEO Andy Jassy expressed confidence that investments in AI computing will yield strong returns on invested capital, although he did not specify when these returns would materialize, emphasizing that these investments are not “quixotic pursuits” but necessary to meet rising market demands.
- Market Structure Evolution: Jassy noted that the AI market is evolving into a “barbell” structure, with significant demand differences between AI labs and enterprises, suggesting that enterprises at various stages of building AI applications may become the largest segment of the market in the future.
See More
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- Amazon's Capital Spending: Amazon's stock fell due to significant capital expenditures, reflecting the company's aggressive strategy in expansion and infrastructure investment, which may impact its short-term profitability.
- Bitcoin Bounce: Despite overall market pressure, Bitcoin saw a slight bounce, indicating a demand for digital assets as a safe haven in uncertain market conditions, potentially attracting more investor interest.
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See More
