Tech

(Seattle)

Healthcare investors are getting very nervous about the industry getting “Amazoned”. Ever since Amazon received several licenses to sell and distribute pharmaceuticals several weeks ago, paranoia has gripped the sector. It is looking increasingly likely that Amazon will start to sell prescription drugs, and in doing so, grab market share and drive down prices. The pharmaceutical business is worth $450 bn per year in the US. The sector is responding with potential mergers and the quick adoption of next day prescription delivery, all presumably efforts to pre-empt an Amazon takeover.


FINSUM: This sector looks absolutely ripe for Amazon, and we expect the company will apply its excellent customer service and major logistics prowess to grab market share here.

(New York)

Bitcoin is being called one of the grandest bubbles in history, perhaps akin to the famed tulip bubble. But a new survey shows that opinions on bitcoin are highly bifurcated along generational lines. Despite viewing stocks as too risky, Millennials generally are much more optimistic about bitcoin than Baby Boomers. One of the big drivers of this higher level of faith in the cryptocurrency stems from an expressed belief that bitcoin is more “trustworthy” than big banks, a strong point of difference between Millennials and those 65 and over.


FINSUM: Bitcoin is just a very new type of asset class without any of the traditional safeguards. It is also fundamentally digital. Taken together it makes perfect sense that younger people would be more comfortable with it.

(Seattle)

If there was ever a contrary opinion to the prevailing narrative, this is it. Bloomberg has published an article contending that Amazon has not yet figured out the grocery market, and that its purchase of Whole Foods was a sign of weakness, not strength. The company has spent a decade trying to break into groceries, but has been largely unsuccessful. The reality is that people don’t like to shop for groceries online, so the purchase of Whole Foods was more a recognition that the company could not apply its usual ecommerce model to this market than a signal it was set to “Amazon” it. Only 3% of grocery shopping happens online, and Amazon’s CFO recently admitted that there is “no one solution” for selling food.


FINSUM: This article frames the situation such that Amazon is searching for a way to delivery a great grocery service just like everyone else. It seems to be true. Maybe the grocery business does not have as much to worry about as investors think?

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