- Amazon just crossed $1000 stock price
- Amazon just bought Whole Foods
- Amazon Invested in several medical providers
- Amazon lobbies for e-commerce taxes
“What are we to make of these events?”
Simple. Amazon will turn Whole Foods into a doctor’s office and retail store.
With 450 brick-and-mortar stores, Whole Foods gives Amazon the ability to store and sell its usual wares of electronics and such, as well as jump into the medical industry.
“But Amazon just paid $14 billion for Whole Foods. It doesn’t have the capital for this endeavor and still bring profits to investors.”
Actually it does. Amazon stock is doing so well, it’s cost of capital (rate of return for investors) is zero. Meaning Amazon’s stock climbs automatically so investors already meet their expectations by simply holding onto it.
So Amazon can afford to invest. Like it’s doing with pharma companies and other medical providers.
And it’s lobbying Congress to enforce e-commerce taxes. Why? Because it sees its future as both online and in brick-and-mortar stores. And it wants to limit competitors by increasing internet sales taxes.
Analysts have expected Amazon to jump into the pharmaceutical industry sooner or later. But it wants to emulate CVS and combine retail, doctor’s offices and groceries into a one stop shop. As well as have more storage for Same-Day Shipping, which is where they’re headed.
So expect an Amazon store near you!