In a strategic move, Amazon.com Inc. (NASDAQ:AMZN) elected Brad Smith, former CEO of business software company Intuit (NASDAQ:NASDAQ:INTU), as a new director on its board this Wednesday. Smith will also join the board's Audit Committee. He has been serving as a director at health insurance company Humana (NYSE:NYSE:HUM) since September 2022.
Analysts perceive this appointment as a sign of Amazon's ongoing expansion into the healthcare sector, a market that could potentially generate significant revenue growth. Smith's expertise in both the technology and healthcare sectors is expected to provide a unique perspective to Amazon. His tenure at Intuit combined with his experience in the health insurance industry aligns with Amazon's strategy to harness its technological capabilities in the healthcare sector.
Amazon's healthcare initiatives, including pharmacy operations, collaborations between Amazon Web Services and healthcare companies, and early-stage primary care projects, are projected to contribute an additional 100 basis points of revenue growth in 2026. Analysts estimate the likelihood of this outcome to be greater than 10%.
Last month, Blue Shield of California launched a new pharmacy care model involving Amazon Pharmacy among five other companies. The collaboration aims to offer home drug delivery services and enhance customer-centric pharmacy experiences by leveraging Amazon’s upfront pricing, on-time delivery, and 24/7 access to clinical care.
Amazon's stock has increased by 73% this year and was trading at $145.33 late Thursday morning, marking a 0.3% rise. The company has been recognized as one of the 15 stocks in the S&P 500 with high Buy-rating ratios and rising earnings estimates for 2024.
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