Submitted by Paradox68 t3_125ui0d in wallstreetbets
d3nv3rite t1_je8f8eo wrote
Reply to comment by Paradox68 in Anyone else think AMZN is going to pop off tomorrow? by Paradox68
Amazon is growing into a conglomerate, similar to how General Electric was 20 years ago, where they are trying to do everything. The problem is that each part of their business has different growth opportunities, which in some cases may actually be hurt due to each business unit having to compete with other business units for capital. An example of this is Amazon Logistics. If spun off into a separate company it could rival UPS & FedEx, and 3rd party retailers would be more likely to ship with Amazon if the delivery business is separated from the retail business. Whole Foods also hasn't done very well under Amazon's leadership, as their focus on technology & online delivery has ruined the store experience with "shoppers" filling the aisles to pick internet orders. These are just a couple examples of business units in Amazon that might be worth more if spun off into independent companies.
Paradox68 OP t1_je8fl3j wrote
>and 3rd party retailers would be more likely to ship with Amazon if the delivery business is separated from the retail business
Why do you think this? Like I said, anyone with a brain would still understand that it’s still Amazon or owned by Amazon. And that using the business benefits Amazon in one way or another. Retailers don’t ship with Amazon because they are competing with Amazon. Even if it was separated, they would still know that using Amazon to ship would detriment their business inherently by helping Amazon.
Like I said, it’s all asinine.
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