Money Moves
It’s fair to say that Andy Jassy was given the Amazon job at an unfortunate time. Jeff Bezos, the second richest man in the world, stepped down from the position and gave it to Jassy in the summer of 2021, and you can argue that was the peak of the post-pandemic economy. The company is down 25 percent since he took over due to macroeconomic woes that have negatively impacted the business, but Jassy hasn’t sat back and watched. Amazon stock split recently, bringing their share price to the $100 range, and the acquisitions have been very interesting from the company, although we’ll see if it’s successful.
Amazon made two more business moves this week, the first being a partnership with Peloton. There were rumors Amazon would acquire the company this year, but instead they have reached a deal to sell Peloton products on Amazon’s website. The deal can benefit both businesses, with Amazon set to receive increased traffic to their website and possibly include Peloton content into their Prime membership, which would boost sales. Peloton will have more consumers viewing their products, and it seems like a win-win. Additionally, Amazon joined the race to acquire Signify Health in a bidding war with UnitedHealth to add to their healthcare portfolio, a side they are looking to develop and conquer like they have with other sectors. They did change their healthcare space by closing their Amazon Care telehealth service as they recently acquired primary care business One Medical. According to executives, Amazon Care didn’t meet the needs of their consumers and instead became an area that was not worth continuing. Instead, they will reformulate that area with new pieces, and it’s possible Signify is one of them.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
