Internet retailer. Competitor killer.
Amazon has long been wreaking havoc on the retail world, but this past month has been especially troubling for Amazon competitors of all kinds.
Amazon recently veered into Best Buy territory by rolling out a Geek Squad competitor to install its smart home gadgets and, presumably, push its virtual assistant Alexa to keep those gadgets in Amazon’s ecosystem. Since market close on Friday, Best Buy market value has dropped 7 percent, representing a more than $1 billion drop in value. Here’s how the stock reacted to the news:
Best Buy isn’t alone.
Supermarkets haven’t regained the billions in market value they lost following the announcement that Amazon was acquiring Whole Foods. In fact, their lot has gotten worse. Walmart, Kroger, Target and Costco have lost a combined $30.5 billion since June 15, the day before the Amazon news. Whole Foods, on the other hand, has gained 27 percent, nearly $3 billion, in market value
Even a distribution deal is enough to send Amazon competitors into a tailspin. Amazon’s partnership with Nike to sell its sneakers last month caused the value of a number of sporting goods competitors to drop to the tune of a half billion dollars since:
Amazon has been a dark cloud over Blue Apron since the meal delivery company went public June 29, as both Whole Foods and Amazon have dabbled in the meal delivery space. Blue Apron has mostly traded below its IPO price since going public.
Of course, this all could just be temporary. When Amazon expanded into GrubHub’s restaurant delivery territory in 2015, GrubHub’s stock took a hit. Since then, however, its stock price and market value have more than recovered.
Amazon’s market value is up 3 percent since the Whole Foods deal and up a whopping 33 percent since the beginning of 2017.
Recode – All Go to Source
Author: Rani Molla
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