Amazon (ticker: AMZN) has announced that it will soon begin selling cars on its e-commerce platform, allowing customers to make some of their biggest-ticket purchases online. The first brand available for purchase will be Hyundai, with Amazon Web Services serving as the preferred cloud-computing provider to facilitate this online transformation.
Hyundai CEO Jaehoon Chang expressed excitement about the partnership, stating that Amazon is the ideal collaborator to help improve transportation efficiency and sustainability. Customers will be able to browse cars available at nearby dealerships on Amazon's website and complete their purchase online using their preferred payment or financing options. They will then have the option to have their vehicle delivered directly to them or shipped to a local dealership.
Although Amazon shares experienced a slight decrease of 0.6% to $142.33 on Thursday, the stock has surged by an impressive 70% this year.
This news of Amazon entering the online car sales market had an impact on the stocks of Carvana (CVNA) and CarMax (KMX) on Thursday. Carvana's stock saw an 8.4% decline to $31.30, but despite this drop, it has experienced a remarkable 560% increase this year, making it their best year on record according to Dow Jones Market Data.
Furthermore, CarMax's stock was already experiencing a decrease prior to this news due to an analyst lowering their target price for the stock, citing a rise in delinquencies on auto loans. Following the Amazon announcement, CarMax shares fell by 7.2% to $63.04, marking their largest percentage decrease since September 28th. However, the stock has still managed to gain 3.5% overall this year.