Why Amazon Is Falling Today – The Motley Fool - eComEmpireStore + Brought to You By: Robert Villapane Ramos

Why Amazon Is Falling Today – The Motley Fool

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, […]



Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Shares of Amazon (AMZN 0.14%) are trading 2.2% lower at 11:33 a.m. ET on Wednesday after rival Walmart (WMT -0.32%) announced it had signed a partnership with Paramount Global (PARA -1.25%) to offer the movie studio’s streaming service to its Walmart+ member loyalty program.
While the deal isn’t about to prove particularly competitive to Amazon Prime Video since few sign up for Amazon’s own membership program to simply get streaming video, Prime itself is coming under greater scrutiny. With Walmart+ priced some $50 less than Prime, it could be seen by some as a better value now.
Walmart has tried offering movies to its customers before, once with a DVD rental service and once via its Vudu streaming offering. Both never gained traction and were subsequently sold off. This could be a better option for Walmart+ members since Paramount+ is operated by someone else and Walmart is simply providing access to it, albeit it being Paramount’s ad-supported level.
Amazon Prime, though, is being investigated by the Federal Trade Commission over the ease of unsubscribing from the service. The probe has since expanded to include other Amazon subscription services including Audible, Amazon Music, Kindle Unlimited, and Subscribe & Save.
Amazon has an estimated 150 million U.S. subscribers in its Prime program, which costs $149 a year. Walmart+, on the other hand, boasts just 11 million U.S. customers.
The reason most people sign up for Prime is the fast, efficient delivery of goods from the e-commerce site. Walmart+ won’t likely see any crush of people paying $98 a year because it now has streaming video.
Yet along with discounts on gasoline and a six-month free trial to Spotify, a free subscription to the Paramount+ Essential Plan, a $59 value, is a nice add-on benefit.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Spotify Technology, and Walmart Inc. The Motley Fool has a disclosure policy.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning analyst team.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.

source

storefronts0f-20
US