Acquisition Aftermath

 

Have you ever had buyer’s remorse?

 

And I’m not talking about stocks – we’ve all bought something we thought would be a winner and watched as it reversed course.

 

I’m not talking about stocks…

 

I mean have you ever bought something that you didn’t really need but really wanted, got it home, and then realized that you just wasted your money?

 

It might be something as small as a new cellphone…

 

Or could be as big as a new car or boat.

 

But we’ve all had them. We buy these things and they just don’t measure up to the expectations we had going in. It’s one of the worst feelings there is to have in Western Society.

 

However…

 

One of the best feelings is getting a deal on something that you wanted OR needed and then it pans out to be way better than you ever expected it could be.

 

From what I’m told, it’s as close as one can get to the feeling of winning the lottery.

 

Which is probably what Jeff Bezos and his board over at Amazon (AMZN) are feeling right about now after the first month of the Whole Foods buyout.

 

I’m thinking right about now, Amazon feels pretty good about this acquisition…

 

Because after just one month since the merger took place, it has been reported that Whole Foods labels have already sold $1.6 million worth of product over the Amazon website.

 

How crazy is that?

 

Amazon is becoming the “Wal-Mart” of the internet –it sells almost everything – and now that you can get your groceries delivered right to your door, it has figured out a way to give customers everything they need – short of gas and automobiles (at least for now)!

 

$1.6 million…

 

And that’s LESS than they COULD have made! Amazon sold $500,000 of Whole Foods’ products in the first week…

 

But due to lack of product, sales dropped to $300,000 for weeks two and three. However…

 

After restocking their inventory, sales jumped back up to $500,000 in the fourth week – so sales could have easily been $2 million for the first month of carrying

Whole Foods’ labels.

 

That’s NUTS…

 

What’s crazier?

 

It’s likely only going to keep going up from there.  Think about it…

 

It’s the first month. Which means that the number of people already buying Whole Foods’ goods are relatively small compared to what it could be once their entire customer base is aware of the brand’s full availability on Amazon.

 

It’s actually pretty amazing – and I bet all involved with the deal are thrilled with the result.

 

You know who probably isn’t happy?

 

The actual Wal-Mart (WMT).

 

Wal-Mart and Amazon have been in a battle for retail supremacy for years – but Wal-Mart always had the advantage: storefronts.

 

When Wal-Mart acquired Amazon competitor, Jet.com, and put founder, Marc Lore, in the position of CEO of Wal-Mart’s eCommerce division – they looked like they were ready to start cutting into Amazon’s space.

 

Then Amazon bought Whole Foods and changed the game.

 

And keep in mind; Amazon has just started making changes…

 

There are plans in place that could make it so much more – like more frequent and larger discounts, Amazon Lockers in stores so you can get your other Amazon goods in person if you don’t want to wait, and a grocery membership like their Prime rewards program.

 

This could put an end to Wal-Mart’s reign at the top of the mountain.

 

It could make things VERY interesting…

 

Not only in retail, but in the markets as well.

 

It’s why I love my job – there’s always something happening that makes it both challenging and fun – and I think my GorillaTrades subscibers would agree…

 

We’d love to have you with us as we expertly maneuver through the minefield that can be the stock market – my risk-adverse system has been proven to make money! The GorillaTrades system is what I used to turn $250K into $5.5 million* – and I can help you make money too!

 

Please consider becoming a subscriber today…

 

That way, when Amazon meets my system’s strict technical requirements, you’ll be among the very first to get the news! I’ll be all over that pick like white on rice!

 

Till next time…

 

Price is what you pay. Value is what you get.” – Warren Buffett

* Please note that this happened during the dot-com era, and Ken used both margin and options to leverage his account. This result is not typical and it would be very difficult to produce this type of return in the stock market today.