Of all the top dotcoms, Amazon has disappointed the most in recent years. While the likes of Yahoo, Google and eBay grow, grow and then grow some more, Amazon has looked increasingly like a mature stock, with single digit growth, concerned about protecting its market position.
It hasn’t even engaged in major corporate purchase since the dot com crash.
But all that changed yesterday, with the news that Amazon was buying out fashion online retailer, Shopbop.com, a web site which specialises in selling luxury brands.
However, some analysts felt it smacks a little of desperation. Amazon likes to talk about its huge selection. But for web sites which sell such exclusive products, association is all important, and some fear that the Shopbop.com reputation could be tarred by the Amazon link.
© Investment & Business News 2013