Amazon — One Step Closer To World Domination
Dear Rundown Reader,
How far will Jeff Bezos go in his quest for total commercial dominance?
His company Amazon is already top dog in retail, one of the best in media streaming services and has a huge edge in the grocery game.
And we doubt this will be the last industry Amazon disrupts.
We just can’t imagine what’s left.
Maybe governments, as Bezos declares his own virtual city-state?
As it turns out, Amazon’s latest power play will be in the prescription drug game.
Today’s Rundown takes a close look Amazon’s pending purchase of Pillback.
Your Rundown for Monday, July 2, 2018…
Amazon’s Quest For World Dominance Moves To Healthcare
Amazon (NASDAQ: AMZN) is shoving its weight around again.
This time in the healthcare world.
It appears major disruption is on the horizon. Specifically for brick-and-mortar pharmacies.
Last week, Amazon announced it will shell out approximately $1 billion to purchase Boston based Pillback.
Pillback is a mail order pharmacy servicing all 50 states and offers Amazon direct and streamlined entry into the “big pharma” landscape.
AMZN’s announcement sparked a sell-off in pharmacy stocks, much like it did in the food industry after announcing its Whole Foods buyout.
Bloomberg reports, Walgreens and CVS shares sank 8.5% and 8.9% respectively last Thursday after the news broke.
Meanwhile AMZN shares steadily ticked up to close last week, rising 1.74% as of Friday’s close.
It appears Bezos has another winner with this play.
And mainstream pharmacies weren’t the only victims of AMZN’s announcement.
CNBC reported, Walmart lost roughly $3 billion in share value last Thursday after Amazon announced it was buying the direct-mail pharmacy.
The irony here is, not long ago Walmart was in the lead to buy PillPack.
But AMZN does what it always does, flexed its muscle and swooped in with a higher bid.
The turn of events cost Walmart a net loss of $2.3 million when you consider the stock price action last week, the CNBC report notes.
That’s a hard pill to swallow.
We’ve set the stage for an epic retail showdown between AMZN and Walmart a few times.
But this latest blow could very well shift the balance of power between the two for good.
What’s next for AMZN?
Anything short of its own virtual city-state seems possible.
Now, turning to the markets this morning…
Market Rundown for Mon., July 2
Yield on the 10-Year Treasury sits at 2.831% this morning, down 0.02.
S&P 500 futures are down 15.00 at 2,706.
Oil’s down $0.34 at $73.81.
Gold’s down $3.90 to $1,250.
Bitcoin goes for $6,334 this morning, according to CoinDesk.
We’ll talk again on Tuesday.
For the Rundown,