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Highlights:
- Amazon has announced its plans to acquire healthcare player One Medical.
- AMZN stock rose over 12 per cent in one month.
- Amazon's electric delivery cars started rolling out from Rivian in more than 10 cities.
Stocks of e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) created a buzz on Wall Street after it announced its plans to acquire healthcare clinics chain operator One Medical.
The companies announced on Thursday, July 21, that they have signed an agreement under which the e-commerce-focused technology firm would acquire the primary care firm for US$18 per share in an all-cash transaction.
The acquisition deal, which is said to be valued at around US$3.9 billion including One Medical's net debt, indicates Amazon's expansion into the healthcare sector. In 2019, it tested virtual care visits for its employees in Seattle. After that, it provides the same services to other employers in other cities under the Amazon Care brand.
According to the SVP of Amazon Health Services, healthcare is in "high priority" for the company that needs "reinvention".
Notably, One Medical claims to have several big brand names as its customers, including Airbnb Inc, Alphabet’s Google, etc.
Amazon's stock performance
AMZN stock price closed at US$124.63 on July 21, and its trading volume was 60.23 million.
The tech stock slipped into negative territory this year amid macroeconomic factors like inflation and other uncertainties. However, it returned gains of 12.96 per cent in the last 30 days.
With a market capitalization of US$1.25 trillion, AMZN stock holds a forward one-year P/E of 99.81 and an EPS of US$2.07.
Amazon's Q2 FY22 performance
In the first quarter of fiscal 2022, Amazon's net sales grew to US$116.4 billion, up seven per cent from US$108.5 billion in the year-ago quarter.
Its net loss was US$3.8 billion in the latest quarter against an income of US$8.1 billion in Q1 FY21.
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Bottom line
Amazon recently said that its custom electric delivery cars from Rivian have hit the road in the US. It said that customers would be able to experience deliveries via electric vehicles in over 10 cities including Seattle, San Diego, Chicago, Dallas, etc.
