Amazon shadow looms large ahead of retail
behemoth to strike next.
“It’ll be interesting to see (Amazon CEO Jeff) Bezos’ next move in terms of wanting to expand into a certain space,” said Daniel Morgan, Portfolio Manager at Synovus Trust in Atlanta.
He said apparel as well as pharmaceutical distribution were among the areas where Amazon has been said to make its next big move.
“They’ve shown up in places we didn’t think they’d have competitive impact just two years ago.”
In a sign of Amazon’s widening clout, industry bellwethers like McDonald’s, 3M and Johnson & Johnson in their latest earnings calls were asked for the first time about effects of Amazon on their businesses.
NOT-SO-GREAT EXPECTATIONS: Consumer discretionary is the S&P 500 sector expected to post the smallest yearover-year earnings growth this reporting quarter, with a gain of 3.3 per cent. Overall, earnings are seen rising 12 per cent from last year.
Amazon’s own results weigh on the sector, as it earned 40 cents per share instead of the $1.42 analysts had expected. But its 25 per cent revenue increase to $38 billion was seen as a detriment to some competitors and could weigh down expectations for their quarterly reports.
“Expectations have been pushed down because a lot of the retailers, particularly the bricks and mortar ones, have had problems — Amazon