By
Godfrey Benjamin
April 18th, 2024
AMZN stock performed dismally on Monday in comparison to its competitors but it is up today. Amazon is going to buy a stake in Deliveroo and is expanding to Sweden.
Amazon.com Inc (NASDAQ: AMZN) stock lost 1.67% on Monday and continued to fall in the pre-market on Tuesday. The shares were at around $3,098, 0.42% down. However, as the market opened, Amazon (AMZN) went up. At the time of writing, AMZN shares are at $3,165.74 (+1.73%). This rise can be explained by the news about the intentions of Amazon to buy a stake in Deliveroo.
The stock underperformed when compared to some of its competitors on Monday, as Microsoft Corporation (NASDAQ: MSFT) rose by 5.62% to $216.54, while Alphabet Inc (NASDAQ: GOOGL) fell 0.35% to $1,482.76, and Walmart Inc (NYSE: WMT) fell by 0.08% to $129.30.
However, the overall trend on the AMZN stock remains bullish despite the reduced uptick rate. According to its historical figures, AMZN stock has been up 74.06% in the past one year, up 68.41% YTD, up 34.26% in the past three months, jumped 3.73% in the past one month, and 3.72% in the last five days.
The impressive performance is largely attributed to the COVID-19 related sales uptick experienced in the first half of the year. With the situation on the ground still not fully recovered, Amazon is set to reap hugely from the social distancing rules and voluntary and authorized stay at home orders.
Amazon Interest in Deliveroo and Its Expansion to Sweden
Headed by billionaire Jeff Bezos, the company has been diversifying its market to cushion against market pullbacks. This comes despite the friction with the U.S. government over its market monopoly. However, with the fierce trade competition between China and the United States, Amazon is likely to benefit from its government support to win Chinese tech rivals.
As part of business diversification, Amazon has been in discussions with the UK regulators over acquisition of16% stake in Deliveroo.
After months of consultations and market analysis, Amazon has finally been given the green light to directly invest in the struggling Deliveroo.
“We are delighted that the CMA has concluded its 15-month investigation and that the Amazon minority investment can now go ahead,” a Deliveroo spokesperson said on Tuesday.
“This is fantastic news for U.K. customers and restaurants, and for the British economy. British born Deliveroo will use the investment to increase choice and value for customers, support for restaurants and will be able to offer more riders the flexible work they value as the company expands,” added he.
Moreover, Amazon announced it will launch in Sweden via the website Amazon.se. “The next step is to introduce a complete retail offering in Sweden, and that is what we plan to do now,” said Amazon’s Alex Ootes in a statement.
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