Amazon Faces a Potential Existential Threat That Could Hammer Its Shares, Doug Kass Reveals | TheStreet

As mentioned late yesterday, despite the enormous success of “Prime Day,” the continued expansion of product offerings and an all-time record stock price, Amazon.com Inc.  (AMZN) is likely to face its greatest existential threat from regulatory agencies and legislators in Washington, D.C., over the next year:

“I am shorting Amazon today because I have learned that there are currently early discussions and due diligence being considered in the legislative chambers in Washington, D.C., with regard to possible antitrust opposition to Amazon’s business practices, pricing strategy and expansion announcements already made (as well as being aimed at expansion strategies being considered in the future).

If I am correct, word of this could lower Amazon’s shares by 10% overnight. And if expansion or pricing prohibitions are attacked for antitrust reasons (or for other reasons), a far more severe market impact is possible.”

— Kass Diary, “Shorting Amazon”

Background

Here is more on Amazon from a July 11 column:

“With the Whole Foods transaction, Amazon’s vast power will be under the microscope. Is Amazon a productive change agent and force for the good of the consumer by virtue of a reduction in product prices? Or is Amazon’s disruption of the general retail business a destroyer of jobs, moving previously productively employed workers into the unemployment line?

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Amazon Faces a Potential Existential Threat That Could Hammer Its Shares, Doug Kass Reveals – TheStreet.