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With the deal announced a month ago, Amazon stock investors are closely monitoring to see if the acquisition was already factored into.
Amazon.com Inc (NASDAQ: AMZN) has disclosed that it acquired Selz, an Australian company that provides customers with tools to enable them to start, scale and manage their business. The deal happened rather silently last month and now Amazon stock investors are looking forward to seeing how it assists the company progress further.
Amazon stock was trading around $3261.50 in the after-hours trading session, after dropping approximately 0.23%. However, AMZN stock has significantly benefited from the ongoing coronavirus pandemic as the company continues to provide essential services and products to people staying at home.
According to data provided by MarketWatch, Amazon’s stock jumped approximately 50% last year but has since been trapped in a horizontal consolidation, particularly in the past three months. Notably, Wall Street analysts are extremely bullish with the Amazon stock based on the ground fundamentals. According to a survey done by MarketWatch, Amazon stock received an average of Buy rating from 50 ratings. The unanimous Buy call is a clear demonstration that the company is headed to more gains in the coming quarters.
Amazon Stock and Selz Acquisition
Amazon remains a giant company, particularly in the e-commerce industry, whereby it controls the majority of the North American market and also overseas. The company has a reported market valuation of approximately $1.65 trillion with 503.56 million outstanding shares.
The huge cash reserve has enabled Amazon to take advantage of emerging coronavirus opportunities. Over time, the company has attracted different global regulators over monopolistic practices.
Perhaps the main reason it did not disclose the Selz acquisition until now. Speaking on the matter, Martin Rushe CEO and founder of Selz noted that the company will continue to operate with existing customers without changing anything. “We have signed an agreement to be acquired by Amazon and are looking forward to working with them as we continue to build easy-to-use tools for entrepreneurs. Nothing is changing for our customers at this time, and we’ll be in touch with customers as and when we have further updates,” Rushe noted.
Selz acquisition by Amazon is strategic in all forms as it will help the company further penetrate the Australian market without attracting much of regulators’ attention.
With the deal announced a month ago, Amazon stock investors are closely monitoring to see if the acquisition was already factored into. Lately, Wall Street has also been marred with crazy speculation especially from retail traders thus making most fundamental aspects not as useful as before. The effect has been observed in the last few months from GameStop, Nokia stocks among others.