Author Topic: AMZN  (Read 525 times)

ScottF

  • Members
    • View Profile
AMZN
« on: January 31, 2020, 10:50:28 AM »
Amazon just blew away earnings numbers and jumped over 10% this morning, surpassing a trillion-dollar valuation.

As an investor who just recently doubled-down, I like this a lot. But I wonder where this goes. My prediction is that within the next 5-10 years, AMZN is forced to break up into at least 3 pieces: retail, merchant services, and AWS (web services). I'm not sure how even doing that stops it from utter domination, but perhaps it slows it a bit and creates room for further competition in those areas.

Should the government get involved at all? I don't see much within AMZN that prohibits competition beyond execution and innovation. They don't own the sales channel or the product(s) or have a proprietary lock on the service model itself.


Lloyd Perna

  • Members
    • View Profile
Re: AMZN
« Reply #1 on: January 31, 2020, 10:59:12 AM »
They do have the amazon basics products though and I think its the most anti-competitive thing they are doing. They use their internal sales data to find the  most profitable items to sell and then private label them at a better price, pushing out the competition.  It's brilliant from a business perspective. But, if they get in trouble with the regulators it will probably be because of this.

ScottF

  • Members
    • View Profile
Re: AMZN
« Reply #2 on: January 31, 2020, 12:34:03 PM »
Agreed, Amazon Basics is ruthless. So maybe it becomes it's own company, with separated ties to both retail and merchant services. Of course, they'd just shut it down if that was the case.