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Is Amazon Too Big?

By Charles Payne, CEO & Principal Analyst

Amazon has gained a reputation as an industry-killer with a veracious appetite, and no industry is too big or too small, including selling live Christmas trees.

With that in mind, many are saying something must be done to slow down this behemoth before the company puts too many companies out of business and too many people out of work.

That debate continued to rage last week after a report in the Wall Street Journal of Amazon plans to cut down on extra delivery fees to lure customers from FedEx and UPS, and now, many analysts are wondering if these giants can survive and which will eventually be bought by Amazon.

But is this just creative destruction that ultimately leads to better products and services for end-users, and is Amazon actually doing business a favor by sparking them to be better?

Amazon has been deadly in newer industries with smaller companies.

Web Printing

Amazon launched “Prints” on September 21, 2016, sending Shutter Fly shares down 14%.

Reaction to Amazon



Shutter Fly (SFLY)




Video Conferencing

Amazon announced video conferencing on February 14, 2017, sending shares of Log Me In down 9% and the stock never recovered.

Reaction to Amazon



Log Me In




Giant Slayer

But its Amazon’s move into larger multi-billion dollar industries with long established players that is rattling many in business and government about the company’s power to not just disrupt, but possibly destroy.


One the day of the Wholesale takeover, grocery stocks were rocked, including United Foods down 26% during the session

Reaction to Amazon



United Natural Foods (UNFI)



Kroger (KR)





On November 7, 2017, Amazon launched its furniture brand and Wayfair was hit 7% and William Sonoma 5%.

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Wayfair (W)



William Sonoma (WSM)




On May 17, 2017, reports Amazon is interested in being a major player in the pharmaceutical world sent shares of Walgreens and CVS tumbling.

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Walgreens (WBA)



CVS Health Corp (CVS)



Packet Delivery

Rumors of Amazon entering package delivery first reported on January 12, 2016, pressured shares of FedEx and UPS, and while both are higher since, they have significantly underperformed the market.

Reaction to Amazon



FedEx (FDX)



United Parcel Service (UPS)




ll eyes will be on the earnings from Amazon at the close of trading. The stock got hit three months ago when it offered lower 4 quarter guidance versus 2017 (they achieved 20% growth, but the year before, they achieved 30% growth).  

Charles Payne
Wall Street Strategies


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