Breakfast News: Amazon Redesigns Auto Shopping
December 11, 2024
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Source: Image created by JesterAI.
1. Amazon Auto Launch
Hidden Gems rec Amazon (AMZN 0.01%) has added cars to the long list of things it sells, launching Amazon Auto in 48 U.S. cities on Tuesday. The service allows buyers to search for, order, finance, and arrange pickup of cars available at local dealers, and offers trade-in valuations.
- “We're partnering with dealers and brands to redesign car shopping”: Amazon’s head of global car services Fan Jin spoke of future plans, with the service starting with Hyundai dealers at launch.
- Who else to watch: The launch brings competition for Costco's (COST 0.65%) existing motor business, which already works with 3,000 dealerships across the country. It’s up against Walmart (WMT 1.09%) too, whose offering is less developed than Costco’s.
2. GM Parks Robotaxi Investment
General Motors (GM -1.88%) is pulling the plug on further funding for its loss-making Cruise robotaxi subsidiary. Citing resource costs and increasing competition, the company will merge the technology with its in-house developments. The move is expected to save $1 billion per year.
- “The importance of driver assistance and autonomous driving technology in our vehicles”: CEO Mary Barra explained GM’s new focus, as taxi competitors – including Tesla (TSLA 0.15%) and Alphabet’s (GOOG -0.67%) Waymo – plan big expansions.
- In need of innovation: Up 46% over the last 5 years, General Motors has lagged the S&P 500’s 90% rise.
3. Next Up: Adobe After the Closing Bell
Later, we’ll get Q4 results from Adobe (ADBE -0.72%), which beat revenue and earnings expectations last time. Since its 2009 Stock Advisor recommendation, the shares have outpaced the S&P 500 by 878%. But Adobe has been left on the sidelines watching the market rally over the last year, with the stock down 12.5%.
- “Groundbreaking advancements in AI”: The company is finding new ways to integrate AI into its operations to make its offerings more sticky with customers, and this remains the focus, particularly after CEO Shantanu Narayen’s bullish outlook with that Q3 update.
- What to look for: The challenge for Adobe now is to turn its AI features into meaningful and sustainable revenue, and to convert more customers to subscription services.
4. M&A Activity in Focus
Private equity investor Sycamore Partners’ reported attempt to take over Walgreens (WBA -4.65%) gave the struggling pharmacy chain’s stock an 18% boost Tuesday, ending as one of the market’s biggest movers yesterday following the highest one-day jump in Walgreen’s history.
- Motion denied: Elsewhere, an Oregon U.S. District Judge has put the brakes on Dividend Investor rec Kroger’s (KR -0.41%) bid to merge with Albertsons (ACI 0.81%), with the Federal Trade Commission (FTC) arguing the merger would have eliminated necessary competition.
- “Not bad for an ‘old economy’, capital-intensive business”: Fool analyst Anthony Schiavone points to how Kroger has quietly generated annualized total returns of 20% over the last five years. Importantly, the original DI recommendation stated the stock could be a good investment even if the FTC succeeded in blocking the merger.
5. Foolish Fun
What are your thoughts on robotaxis: Do you think we’ll see them in most cities any time soon? Have you ridden in one, or are you actively avoiding them? Debate with friends and family, or become a member to hear what your fellow Fools are saying!
