Will This Trend Leave Best Buy Behind?

Best Buy’s (NYSE:BBY) loss is Amazon’s (NASDAQ:AMZN) gain as Pacific Crest analyst Chad Bartley confirmed Friday with his upgrade of Amazon. In a research note seen by Barron’s, Bartley argued that because the company is a “disruptive force in retail,” it is now a “must-own stock in large-cap tech.”

Citing a 27 percent upside, he raised his rating on the Internet retailer’s shares from a Sector Perform to an Outperform and lifted the price target to $346. Shares of Amazon were trading at $270.79 just after 2 p.m. Eastern Standard Time on Friday.

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As retail purchases are being made more and more often online, Amazon’s size and scale, low prices, service quality, and distribution capabilities have allowed the company to grow its share of the e-commerce market, and Bartley thinks that trend will continue.

The facts back up his thesis; Pacific Crest estimated that 9.4 percent of all 2012 retail sales in the United States were made online, an increase of 120 basis points year-over-year. In the same period, Amazon increased its share of the e-commerce market by 390 basis points, while its average growth rate in the previous two years only amounted to 300 basis points…