What Amazon And Netflix’s Latest Moves Will Mean For Competitors

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The handmade market is a niche market, but Amazon.com, Inc. (NASDAQ:AMZN) wants to be the ‘Everything’ store. It also doesn’t cost Amazon much money to extend its platform into turf that was previously controlled primarily by Etsy Inc (NASDAQ:ETSY) and eBay Inc (NASDAQ:EBAY). Etsy is certainly in an even more precarious position than eBay, and investors have seen the value of their shares plummet by more than half already this year, and could see them fall even further because of Amazon. Given Amazon head Jeff Bezos’ long-term thinking, Amazon’s 285 million customers, and Amazon Handmade’s lower fees, it might be just a matter of time before Amazon becomes the go-to place for millions of people around the world to find quality handmade merchandise.

Follow Amazon Com Inc (NASDAQ:AMZN)

Our data shows that elite funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter. 103 funds reported owning Amazon stakes worth $10.46 billion in the latest round of 13F filings, versus 96 funds and $8.4 billion respectively a quarter earlier. Ken Fisher‘s Fisher Asset Management increased its position by 2% to 2.49 million shares while Andreas Halvorsen’s Viking Global established a new stake of 2.28 million shares. D E Shaw upped its stake by 17% to 1.64 million shares.

Follow Etsy Inc (NASDAQ:ETSY)

Hedge funds are divided on Etsy Inc (NASDAQ:ETSY) and eBay Inc (NASDAQ:EBAY). A total of nine funds reported stakes worth $156.79 million as of June 30, representing 10.00% of Etsy’s shares. Chase Coleman‘s Tiger Global Management LLC owns 10.0 million shares and John Griffin’s Blue Ridge Capital owns 695,122 shares. On the other hand, 99 investors we track held 16.00% of eBay’s shares, worth $11.73 billion, led by Carl Icahn and his $2.79 billion position.

We like Netflix and think it’s still in a very strong position globally, but we worry about a correction. We worry Etsy’s network effect isn’t enough against Amazon, and that eBay may also suffer from the Amazon effect. We would stay on the sidelines for now for Netflix, eBay, and Etsy. We think Amazon is a good long-term holding.

Disclosure: None

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