Activist Investors Not Targeting Amazon But They Still Fantasize About It
Activist Investors Not Targeting Amazon, But They Still Fantasize About It
Daniel Loeb says he sees approximately $1T in untapped value in #Amazon. I'm sure the new CEO along with Jeff are happy to hear that, but likely think the number is on the low side ...
Here are a few points from the article: - Puts Amazon's retail business at $1T and AWS at $1.5T. Let me back up and say that again. Amazon (according to investors) created another bigger Amazon in the last 15 years.
- Of course it helps him to say that because he already has a large stake in Amazon.
- Thinks it would be prudent for Amazon to spin off AWS to ease regulator concerns and unlock value. That would be a sea change in Amazon's approach.
- If AWS was spun off, on its own would be only behind Apple ($2.7T), Microsoft ($2.1T) and Google ($1.7) as the largest technology companies in the world.
- Oracle, Adobe and Salesforce combined are $600B. AWS according to these valuations would be more than double that.
By this logic, it's hard not to imagine that Andy Jassy would not split out a separate tracking stock for AWS, while still trying to keep AWS in the fold strategically.
Will be interesting to watch to see if this has ripple effects. It's obvious this has been studied inside Amazon, but there are too many advantages to core Amazon that this stays together.
On the other hand, following the money/value creation is never a bad path to predicting what might happen in the future.