Amazon (Nasdaq:AMZN) punches its way into new territory. Technical traders are all chanting go-go-go. But when a stock is charting new territory it sure helps to put out some fundamental news bit that makes it look like amazon will continue to take over the world.
So today the story circulates about Amazon taking over the staid art world and becoming an on-line auction house supposedly competing with Christie’s (LON:CTG) and Sotheby’s (NYSE:BID) and such. Through some uber big numbers out there and investors will take the stroke and bid up the shares.
But really lets take a look at Amazons disruptive powers. Amazon can sell a $40 hard bound book more effectively than traditional bookstores. Readers get same product at cheaper price and better convenience. OK Got that.
Traditional auction houses have networks of specialist well versed in art. Trained and experienced. They know where the buyers are. It’s the ultimate data base fueled by old school shoulder rubbing networking. Same cocktail parties see and be seen. Make a splash. Galleries will nurture new talent. Can you imagine Amazon having an opinion on a piece of art. Art is like venture capital. Back the right artist and make lots of money.
So far Amazon has no game. When you buy and sell art in the seven figures no one cares if your platform is cloud based. It’s about the art. So Amazon may have some back room technologies which they can license to galleries but that’s about it. Oh by the way. Amazon collects data; a lot of data. Some art collectors do not want data collected on them. Know what I mean. Amazon may just be the kiss of death that keeps away cheque books.
So boys and girls its hype today. This is not a fundamental change for Amazon. but it just might get you to buy a little bit more for what you think is a good new reason.
George Gutowski writes from a caveat emptor perspective.