Amazon’s New Business

By Hoda Mehr Thu, Apr 22, 2021

Hey Scoopers,

After major companies disclosed stronger-than-expected earnings reports, the markets resumed the bullish run. — More on that in the “Overall Market” section.

Beyond the overall market, a partnership between a satellite company and the largest eCommerce platform in the U.S. surprised investors. Meanwhile, a streaming company failed to meet its investors’ expectations to acquire enough new users. — More on that in the “What’s Up?” and “What’s Down?” sections.

By the way, do you think it is time to modernize beauty salons? — More on that in the “Water Cooler” section.

But, first, here is a recap of what happened in the market yesterday:

Market Recap

• U.S. markets: The stock market ended in the red zone on Tuesday. Scroll down to the “Overall Market” section to read more.
• Cryptocurrency: Bitcoin‘s price climbed up to $55K per coin.

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Bull Run Resumed

The stock market ended in the green zone on Wednesday.

After two losing sessions in a row, the stock market rebounded to log positive returns for the first time this week. Boosted by better-than-expected earnings reports from major companies, all the three indices took advantage of the stock market’s bullish sentiment on Wednesday. Moreover, the soaring movement helped the indices to climb near all-time highs reached last week.

New Partner

So, what happened?

Shares of Dish Network (Ticker: DISH) were up by more than 10% on Wednesday. The rally came after the satellite company announced a partnership with Amazon (Ticker: AMZN). According to Dish, AWS would simplify the 5G application development process for developers. Moreover, the company remarked it would be the first 5G network to run in the cloud. It seems that investors are excited about this unexpected partnership.

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Not Growing

So what happened?

Shares of Netflix (Ticker: NFLX) were down by more than 7% on Wednesday. Although Netflix presented better-than-expected results amid the pandemic, the streaming service company missed all estimates for its 2021 first-quarter earnings report. Analysts’ consensus was that Netflix would add more than six million users. However, the company barely reached four million new subscribers. After the sell-off, the company stated that the COVID-19 production delays caused the slow-down in paid membership growth.

Amazon’s New Business

So what happened?

Amazon (Ticker: AMZN) announced a new branch: beauty salons.

On Tuesday, the company announced it is planning to open its first-ever hair salon in London. The 1,500 square foot space will have enough room for more than 4,000 clients but will primarily only serve Amazon employees. Although Amazon is known for its tech sector, the salon makes part of Amazon’s plan to expand its customer base. While enjoying the salon’s services, the company would expose customers to beauty products sold through Amazon’s platform. Furthermore, Amazon will make available an augmented reality to allow customers to see what haircut fits better on them. The company also said that it would give one of its Fire tablets to customers during the service. Despite some authorities raising concerns about Amazon Salons becoming a monopoly, the company stated there are no plans to open any other Salon beyond the one announced in London. Moreover, analysts see the salon more as an Amazon’s beauty products showcase than an actual salon. The project is the first that the company has worked on that involves augmented reality for customers.

It seems that there is no business that Amazon cannot be part of.

If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.

About the Author

The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card