Why Is Amazon (AMZN) Stock Consolidating After The Recent Move?

E-commerce behemoth Amazon (NASDAQ:AMZN) has reached an agreement to acquire MGM Studios in a deal worth $8.45 billion and although it is a monstrous deal, it has not been able to move the needle as far as the stock is concerned.

Why Is Amazon (AMZN) Stock Consolidating After The Recent Move?

In reality, the Amazon stock has been in the middle of a bit of stasis for close to six months. While it is true that the MGM acquisition is going to add such prestige content like the James Bond series to Prime Video, entertainment still not a huge part of the company’s business.

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While the company remains ambitious to become a major player in the entertainment space, it should be noted that it spend $11 billion on content in 2020. That may be a huge figure but it is not much when compared to the $54 billion revenues generated by Amazon Web Services. Hence, growth in entertainment is not seen as a big thing by investors and that may be the reason why such a massive acquisition has not caused much of a stir.

Anthony Gonzales

Biotech, Tech, and Crypto reporter Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.