Amazon is spreading itself too thin, Patrick Moorhead, president and principal analyst at Moor Insights and Strategy, told CNBC on Wednesday.
The e-commerce giant creates technology from e-readers to smart speakers, produces original TV and movie content, dabbles in self-driving cars, and delivers alcohol, groceries and products from third-party sellers on its platform.
The company is also in the final stages of figuring out its strategy to get into the multibillion-dollar prescription drug market in addition to exploring ways to deliver items to your car trunk and the inside of your home.
“I do think Amazon is getting into the danger zone. History is littered with companies who used to be at the top of the Nasdaq who got into areas that really weren’t part of their core business,” Moorhead told CNBC’s “Power Lunch.”
“I really think Amazon is at that point, like these other companies were, thinking that they can do no wrong,” he said. “So they really need to watch themselves.”
The corporation has had meetings about launching programs to bring more advertisers to its video platforms and make it a stronger competitor against YouTube. Moorhead pinpoints this as Amazon’s breaking point.
“They’ve gone over the top by putting cameras in devices you never would have thought of [to deliver targeted ads]. … I just think that’s a step too far, and it could backfire because Amazon is one of the most trusted consumer brands out there,” he said.
Source: Tech CNBC
Amazon is spreading itself thin and getting into the ‘danger zone,’ analyst says