MARKET - A Weekly Review of Amazon Stories and Notes

Investors Buy Into Amazon While Grocery and Pharmacy Dash For Cover 

Recode reports Amazon Go plans to open as many as six more cashierless Amazon Go stores this year. Watch for openings in Seattle where Amazon Go was launched and in Los Angeles where Amazon's first experiment with Whole Foods grocery delivery took place.

Everyone wonders how Walmart will respond to the Amazon Go challenge. In December Recode reported Walmart was experimenting with a new store model called Code Eight and preparing a new cashierless experience called Project Kepler that aims to reimagine in-store shopping with the help of technologies like computer vision.

Earlier this week Quartz reported that Amazon was wreaking havoc on grocery. They suggest this disruption is largely responsible for America’s largest grocery chain Albertsons bid to acquire Rite Aid. This latest move by Albertsons, which also bought meal-kit startup Plated for an undisclosed sum in September, and partnered with grocery-delivery service Instacart in late November, will give Albertsons 4,900 locations across most of the US, and total revenue of nearly US$83B. As everyone can see grocers and pharmacies are scrambling for cover. 

Will Amazon Rule the World? 
Hard to tell at this point, but it is clear the disruption afforded by Jeff Bezos' master plan is significant. Amazon wants to deliver everything you want to your doorstep, anywhere in the world. A Wall Street Journal (WSJ) video shows the e-commerce giant faces several challenges in its pursuit of a global empire. WSJ analyst Karan Deep Singh breaks down the basics with the help of an Amazon delivery box:

How are investors responding?
When Amazon.com announced fourth quarter sales were up 38% to US$60.5B earlier this month investors began to drive up the share price. The Walmart Q4 stumble reported earlier this week has increased the 'hurt' for Walmart and drove Amazon shares even higher. The Amazon Investor Page graphically shows the response.

Amazon is now worth more than 2.5 Walmarts.