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Despite Rumored Reports, Amazon May Not Buy Target in 2018

Gene Munster, a prominent tech analyst of 21 years and a venture capitalist known for his predictions about the financial potential of Apple Inc, took the internet by storm when he announced that Amazon would buy Target sometime in 2018.

The revelation was made in Munster’s report of technological predictions for 2018. He backed the idea with reasonable evidence. He mentioned that acquiring Target would increase Amazon’s store count to over 2300, and put it in direct competition with Walmart. Munster also relied on the $13.7 billion deal of Whole Food Market and Amazon which took place in August 2017, using it to support his theory that Amazon is looking into the future of retail as an exploitable venturing ground.

However, two days after Gene revealed his 2018 Prediction Report for the Technology Industry, feedback from industry experts has poured in on the topic. Many believe Amazon would not be buying Target after all in 2018.

Despite losing 10 percent stock in 2017, Target is a $42 billion business. Amazon’s shares went up by 56% in 2017. Amazon is enormous when compared to Target, with its value beyond $450 billion.

Lauren Hirsch from CNBC believes that Target could be the most significant deal in acquisitions for Amazon till date if it happens. And in that case, Target would have to have specific capacities in areas that Amazon finds itself lacking in. It’s tough to see any problems which matter for Amazon and can be solved by acquiring Target right now. Hirsch also believes integration will become a major problem for the two companies because of the inventory management.

Neither Amazon nor Target responded to any inquiries on the subject, several media houses report.

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