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The cumulative loss to CVS's and Walgreens's market caps has been about $12b. If Amazon had wanted to, they likely could have made more from the destruction of
by kolbe 8y ago
The cumulative loss to CVS's and Walgreens's market caps has been about $12b. If Amazon had wanted to, they likely could have made more from the destruction of value to those companies than they paid to buy PillPack.
I wonder what other industries out there can be arbitraged like this. I bet Amazon could shave well over $10b of market cap off of BKNG if they made the right strategic investment.
- beagle3 8y agoIANAL but I suspect it is actually legal for Amazon to short CVS+Walgreen in this case: Don't "inside information" trading laws apply only to the specific company about which information is available?
- kolbe 8y agoEven though insider trading laws can be quite nuanced, this is 100% legal.
- CGamesPlay 8y agoDoesn't the person on the other end of the short sue Amazon for having insider information material to the value of CVS+Walgreens? Or if not "insider trading", then "market manipulation"?
- beagle3 8y agoInsider information is not well defined, but I don't believe that it covers this case (then again, IANAL). "Market manipulation" is dissemination of false information or demand with the express permission of profiting. But there was no false information or demand here.