Amazon Scores Huge With Its Smart Speaker

Amazon.com Inc. achieved a massive victory with its smart speaker, Echo home. Since smart speakers and connected homes are popular themes in technology now.

With Amazon's Echo Home the company's achieved a huge victory.

According to the head of technology research on GBH Insights, Daniel Ives, Amazon is now dominating the market.

Ives also added that the Echo home of the company now makes up about 75 percent of the smart speaker market. More than 25 percent of searches are now being done via voice-enabled devices.

He said that Alphabet Inc.’s Google, Apple Inc., and Amazon.com Inc. all recognize the incredible growth opportunity that represents connected homes.

Device sales are just the tip of the iceberg, according to Ives.

“The trifecta of Alexa, Echo, and Prime should enable Amazon to further penetrate the consumer, expand Prime membership, and retail spending patterns, while widening the company's consumer competitive moat, in our opinion, for 2018 and beyond,” Ives stated.

Amazon Still in Early Innings

Amazon to generate strong sales this year, according to reports.

On the other hand, Amazon is just beginning in the world of e-commerce and retail business, according to a report.

Piper Jaffray, an investment banking company, repeated its heavy rating on the shares of the internet company. He predicts that Amazon will generate strong sales growth this year.

“Amazon, despite its size and continued strong growth, is arguably still in the early innings of its share gain potential, even in the company's most penetrated market,” Michael Olson, an analyst, wrote in a note to clients on Tuesday.

“Most domestic internet users have a significant opportunity to increase their Amazon holiday wallet share allocation.” he added.

Olson raised his price target for the shares of Amazon from $1,200 to $1,400, on behalf of the 12 percent upside to Monday’s close.

The 1,000 U.S. internet users survey of Piper Jaffray showed that 50 percent of people allocated 10 percent or less of their holiday spending to Amazon. As an outcome, Piper Jaffray estimated that the business had 4 percent market share of U.S. retail holiday spending last year.

“Considering the U.S. is Amazon's most penetrated market, we see this low-to-mid single digit market share as a significant positive,” Piper Jaffray stated.

Analyst Michael Olson predicts that Amazon would generate 28 percent sales growth this year.

The shares of Amazon increased 56 percent last year against the S&P 500’s 19 percent gain.

Earlier on Tuesday, the company’s shares were up about 0.40 percent.

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