|Day's Range||1,161.19 - 1,161.19|
Amazon (AMZN) buying AMC (AMC) would be a huge mistake, according to one Wall Street analyst. Speculation spread on Tuesday of a potential bid from the tech giant after a substack post from The Intersect. Shares of AMC spiked more than 15% on the news Tuesday, before Pachter and Wedbush wrote to clients the deal was “unlikely.” Pachter highlights there’s been no indication that AMC wants to sell itself as one of the key reasons the deal is unlikely. And even if AMC did want to sell itself, Amazon could find a more attractive option anyway, according to Pachter. The analyst points to Cineworld (CINE.L), which filed for bankruptcy earlier this year, as a better potential target for Amazon. Given the bankruptcy, Cineworld’s screens could sell for roughly $600 million less than an AMC screen and therefore would be a significantly better purchase. In the video above, Yahoo Finance’s Dave Briggs and Seana Smith discuss the potential purchase with Pachter. Key Video Moments 00:00:05 - Why a Cineworld purchase makes sense 00:01:18 - Pachter explains case for a downgrade on Amazon.
Microsoft is winning the AI fight, but the competition is hot on its heels.
Amazon (NASDAQ: AMZN) has been in the news for the wrong reasons lately. The e-commerce and cloud computing giant's 2022 revenue increased just 9% to $514 billion, which was a substantial slowdown over 2021's full-year revenue growth of 22%. While it's clear there were justifications for downsizing its workforce, it was somewhat surprising that job cuts were even seen in the relatively fast-growing Amazon Web Services (AWS) cloud computing business.