Amazon and Target are going head to head.
Target announced Tuesday it will hold its two-day sale on Oct. 13 and 14, the same days Amazon will hold its annual Prime event.
Target shares are holding ground against Amazon. The stock hit an all-time high on Tuesday and has outpaced Amazon’s gains over the past three months.
Boris Schlossberg, managing director of FX strategy at BK Asset Management, says this is not a winner-takes-all scenario.
“I think both companies can succeed,” Schlossberg told CNBC’s “Trading Nation” on Tuesday. “Amazon’s strength is really limitless choice and convenience, whereas Target excels at curation and I think that makes a huge difference and that’s what gives them a competitive advantage.”
Schlossberg does see one headwind for Target that could challenge the company and its stock.
“Target’s biggest problem right now is the supply chain. It’s not that they have a problem of creating demand. They have a problem satisfying demand because some of their shelves are getting stripped continuously because of so much customer demand. So, it’s a good problem to have, but if there was an Achilles’ heel that’d be the only Achilles’ heel I see,” said Schlossberg.
Target reported 195% digital sales growth in its second quarter ended July. Amazon anticipates 24% to 33% overall sales growth for its third quarter endng September.
Bill Baruch, president of Blue Line Capital, is also bullish on both stocks. For Target, he sees $140 as a key support level and would be a buyer if it pulled back to that price – it closed at $156.94 on Tuesday.
“Amazon, too, needs to be in your portfolio. A lot of support at $2,800 – it’s bullish above there, break below $2,800, as you can see in the chart, I think you could see a little bit lower,” Baruch said during the same “Trading Nation” segment.
Amazon closed Tuesday at $3144.88.
Disclosure: Baruch holds TGT and AMZN.
