Amazon Sets Sights on Sports Streaming Service – 2 Things Investors Need to be Aware of

It’s been a rough year for the largest e-commerce company in the world, Amazon. Share prices today have fallen to record lows over the past three years, down to just $82/share. As the company sits over 50% lower today than it did this time last year, things are changing structurally for Amazon.

The company has done a deep review of its different segments and plans on cutting unprofitable businesses while going all in on what’s working for them. One segment that the company is particularly high on is sports streaming.

Recently, the CEO of Amazon Andy Jassy highlighted live sports as an area of the business that will see continued spending as other areas deal with cost cuts.

Investing in streaming – in general – is something Amazon has been doing for some time, as their Prime Video streaming unit seeks to compete with the likes of Netflix, Hulu, and other streaming giants. So far, though, it’s struggled to gain traction. Thus, the decision to heavily invest in sports streaming, niching down.

We’ve seen this effort manifest itself in a $1b deal with the NFL, as Amazon is the exclusive broadcaster of Thursday Night Football. But just how far will Amazon be able to take sports streaming? And is it really going to result in the turnaround the company is so desperate for right now?

This all remains to be seen. What we do know is that the goal is for the segment to have its own standalone app. And, there is no anticipated date for when this app would be released – or whether it will ever actually exist. Right now, all we can do is speculate. However, we do have some good news.

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Right Now, AMZN Has Very Poor Upside Potential & Timing Holding it Back

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