Club holdings Amazon (AMZN), Wells Fargo (WFC) as well as Nvidia (NVDA) and Microsoft (MSFT) are in the news Wednesday. Here are the headlines and the implications for the Club’s investment thesis. Amazon completes health deal AMZN YTD mountain Amazon’s year-to-date stock performance. The news: Amazon completed its acquisition of primary-care provider One Medical, the companies announced Wednesday, officially deepening th e e-commerce giant’s health-care presence . The transaction — announced in July and valued at $3.9 billion — is Amazon’s largest health-care acquisition yet. In buying tech-focused One Medical, Amazon has said the companies together can make visiting the doctor an easier and more convenient experience. San Francisco-based One Medical ended fiscal 2022 with 836,000 members, operating 221 medical offices across 27 markets in the U.S. One Medical recorded $1.05 billion in revenue in fiscal 2022 and a net loss of $397.8 million. While the Amazon-One Medical deal had faced an investigation from the Federal Trade Commission, the U.S. regulator did not challenge the acquisition within the initial review window. It is possible the tie-up could face additional scrutiny, Reuters reported , citing an FTC official who indicated the agency will monitor potential harms to competition and consumer data uses. The Club’s take: Amazon’s main foray into health care had been through prescription drug delivery, a natural place for the logistics powerhouse to target. With One Medical, the Amazon flag is now planted in the world of brick-and-mortar doctors’ offices. Health care is not core to our investment thesis in Amazon, and we’ve lately been focused on Amazon’s cost discipline at a time of tougher topline revenue growth. However, health care is a huge market, and Amazon has a strong track record of innovation in online retail as well as in computing through Amazon Web Services. While some past Amazon medical efforts haven’t exactly panned out , One Medical…
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