Retail fraud is a huge problem for online retail giant Amazon (AMZN). It is actually a huge problem everywhere, but for Amazon, absolutely. And Amazon may have a solution brewing for fighting retail fraud, taking on a new investment to help put an end to that particular crime. The move proved welcome for shareholders, who sent shares up nearly 2% in Thursday afternoon’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Retail fraud is on the rise, and considering how many packages Amazon handles in the course of a typical day, it is little surprise that Amazon is on ground zero when it comes to retail fraud. But a new investment in Cambridge Terahertz may help fix that. Amazon was part of just a $12 million round of seed funding, which pales in comparison to the $103 billion retail fraud costs retailers annually.
Basically, Cambridge Terahertz notes that it has reduced airport-scale security systems down to a device that fits in the average palm, allowing users to effectively see through non-conductive materials. It was originally envisioned as a way to detect hidden weapons, but retailers—especially online retailers—began to wonder if there was another use for it. Already, Cambridge Terahertz has landed four government contracts, and eventually, retailers like Amazon may be able to use the technology as a means to see what is in return packages.
New Kindles
Meanwhile, Amazon is also augmenting one of the greatest devices for readers around with new releases in the Kindle family. The Kindle Colorsoft and Colorsoft Kids are delivering new value for decent prices, making tablet-based reading that much more accessible.
First, there is the new Colorsoft, which offers 16 gigabytes of storage for $249.99. With battery life measured in weeks and sufficient storage space for thousands of books, it should be almost exactly what any reader needs. Meanwhile, the Colorsoft Kids edition comes with a year’s subscription to Amazon Kids+, helping ensure that their tablets will be full of reading material without worry about apps or messaging tools. There will be some helpful tools included, though, including vocabulary builders, and a parent dashboard to ensure those late-night reading sessions do not turn into early morning ones.
Is Amazon a Good Long-Term Investment?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 44 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 26.93% rally in its share price over the past year, the average AMZN price target of $258.15 per share implies 11.28% upside potential.
