Here are the 4 times Amazon has panicked investors in other companies

Jeff Bezos

  • Amazon has repeatedly showed an uncanny ability to disrupt entire segments of the stock market with corporate announcements.
  • The most recent example is Amazon's collaboration with Berkshire Hathaway and JPMorgan, which spurred selling in healthcare stocks, but it's a dynamic that's happened repeatedly in recent months.


Amazon's newly announced collaboration with Berkshire Hathaway and JPMorgan may have rocked the healthcare sector, but it's far from the first time Jeff Bezos & Co. have imposed their will on the market.

The company has made a habit out of crushing competitor market values with even the most basic of announcements, and their healthcare team-up is just the latest example of that.

The reasoning is simple — Amazon has a ton of cash and an unparalleled logistical network, and when it looks poised to enter a market, traders get scared and bail out of existing positions in other companies.

Amazon has done this so regularly, in fact, that it can be difficult to keep all the instances straight. That's where we come in.

Below you'll find a list summarizing recent examples of companies getting "Amazon'd" —  the Business Insider-coined term for when a stock finds itself at the whim of the ever-expanding juggernaut.

January 2018 — Healthcare stocks tumble after Amazon, JPMorgan, and Berkshire Hathaway announce collaboration to reduce costs for US workers

While the three companies weren't specific about what kind of enterprise they aim to create, noting only that they wanted to improve employee satisfaction while reducing costs, the announcement reverberated through the stock market.

Managed care and pharmacy providers absorbed the brunt of the selling, with companies including MetLife, Express Scripts, and UnitedHealth seeing large share drops that accounted for billions of dollars in lost value.



June 2017 — Grocery stocks slide after Amazon announces $13.7 billion acquisition of Whole Foods ... and then again two months later after price cuts are announced

Amazon hit grocery stocks with a double-whammy of weakness in this particular instance, causing an initial drop after announcing its mega-acquisition of Whole Foods, then reigniting selling two months later after cutting prices.

The companies affected included KrogerSprouts Farmers MarketTarget, and Walmart, which fell anywhere from 2% to 8% on the various reports.



June 2017 — Athletic apparel retailers slide after report that Amazon was going to partner with Nike

In June 2017, Goldman Sachs published a report speculating that Nike was "close" to commencing a direct relationship selling product on Amazon.com. That caused selling in both athletic apparel manufacturers, as well as retail chains.

The companies affected included Dick's Sporting Goods, Under Armour, and Foot Locker.



See the rest of the story at Business Insider


Contributer : Tech Insider http://ift.tt/2E13YUY
Here are the 4 times Amazon has panicked investors in other companies Here are the 4 times Amazon has panicked investors in other companies Reviewed by mimisabreena on Sunday, February 04, 2018 Rating: 5

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