Last December, Jeff Yastine discussed a trend that would control the landscape of the stock market in 2018 – mergers and acquisitions. After a recent study in which 1,000 executives were surveyed, it was concluded that many of them would have excess funds to work within 2018, and would be straying away from the long-held tradition of growing their companies internally, in order to focus on outside corporations. This proved to be true, as talks of an impending merger between Embraer and Boeing sparked a significant increase in the price of the South American aircraft makers’ stock. In February, the two companies began hashing out the final details of the impending merger, which called for no collaboration regarding military aircraft. Jeff recently discussed three companies that could benefit from a merger with a major corporation such as Google, which included Kroger, eBay, and W.W. Grainger.
According to Jeff Yastine, Kroger, which currently operates around 3,000 grocery stores nationwide, is in a good position to go up against Whole Foods, despite the fact that its stock dropped considerably once Amazon acquired them. Whole Foods is said to be experiencing a decline regarding the quality of their goods since joining Amazon, while prices have only dropped about 1.1 percent. Kroger, on the other hand, is growing as a supplier of organic goods and is also making plans to implement automated checkout systems that will significantly cut overhead expenses. If a company such as Google were to acquire Kroger, it could possibly signify trouble for Whole Foods.
A major theme I expect to emerge this year are competitors pairing off to better compete against Amazon, including some of the following companies…#Mergers #ACQUISITIONS #stocks #StockMarket #investing #BanyanHill $amzn $ebay $erj $kr $gww https://t.co/RFc7T2xudP
— Jeff Yastine (@Jeff_Y_Guru) January 2, 2018
Mr. Yastine also mentioned eBay, which is still amongst the top online auction sites in the world. The variety of goods available, as well as diversity amongst buyers and sellers, gives it a solid foundation that cannot be easily toppled. In Mr. Yastine’s estimation, eBay is currently in the position to challenge Amazon in several sectors, and if Google were to enter the fray, things could get interesting. W.W. Grainger is also an option for acquisition by a powerhouse company, due to its significant assets. Although they also saw a dropoff at the onset of Amazon’s Whole Food’s acquisition, they currently own their own storage and distribution facilities around the nation, which would be necessary for any company seeking to become a real threat to Amazon’s dominance.
Read more on Talk Markets: http://www.talkmarkets.com/contributor/Jeff-Yastine/