The yo-yo stock of etail giant Amazon.com yesterday fell 6% after rumours of an alliance with bricks-and-mortar retailer Wal-Mart Stores failed to turn into solid evidence.
The speculation had seen Amazon’s share price buck its recent downward spiral, leaping by over 20% on Monday [WAMN: 06-Mar-01]. However, a report on the Wall Street Journal’s website, quoting an insider, claimed that any deal between the online firm and Wal-Mart was far from imminent and that there were currently no active talks between the two.
This news promptly sent Amazon’s stock into reverse. “It is down because now it looks like they may have been in talks some time ago, but now it doesn't look like anything’s occurring for the near-term,” explained one analyst. “Investors are just looking for anything positive on Amazon, and any partnership with Wal-Mart would be seen as positive.”
News source: New York Times