AMZN Stock: Why Amazon.com, Inc. (AMZN)’s Disruption Phase Is Over Now

We can rule out the inverted U and the curvilinear relationship since those tend to result in downward stock prices. While not exact, it appears that Amazon may be currently experiencing a linear effect with its diversification plays, which IO theory can help explain. The flexibility of its assets may be playing a role. Since Amazon is primarily a technology company, most of its assets are intangible. Intangible assets tend to perform well in both related and unrelated diversification plays. When technology companies proceed with acquisitions, they are trying to acquire tacit knowledge which can extend the life of current competitive advantages. As things stand, Amazon.com, Inc. (NASDAQ:AMZN) is just trying to maintain its first mover advantage through diversification plays. Amazon is not disrupting anything.

While I believe the effect is currently linear. That may change. A more realistic scenario is the inverted U. Time will tell when that will happen, but as it appears, it’s probably just a matter of time.

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Additional Links:

(1) http://www.businessinsider.com/amazon-is-killing-department-stores-2016-5?ref=il

(2) http://onlinelibrary.wiley.com/doi/10.1002/smj.4250130904/abstract?ref=il

(3) http://amigobulls.com/stocks-to-buy/top-tech-stocks/?ref=il&ref=im