Amazon.com (NASDAQ:AMZN)
Through 10:30 in the morning ET, shares of the e-commerce giant Amazon.com (NASDAQ:AMZN) increased by 2.2%. This marked the fourth consecutive day that the stock’s price increased. The most important news today is:
Amazon is expanding its efforts in the field of robots.
Then what?
More specifically, robotics for warehouses. Amazon recently inked an agreement to purchase Cloostermans, a Belgian business specializing in “mechatronics solutions,” as the company stated on its AboutAmazon.com blog on Friday.
Since 2019, Amazon.com (NASDAQ:AMZN) has said on its company blog that it has been utilizing Cloostermans technology “to assist with moving and stacking big pallets and containers or packaging things together for customer delivery.” Now, Amazon.com (NASDAQ:AMZN) is moving the entire firm (along with its 200 employees) in-house, where it will become a part of the subsidiary known as Amazon Global Robotics.
What’s Next?
Not entirely “now,” that’s for sure. Amazon.com (NASDAQ:AMZN) did mention in its statement that the transaction to purchase Cloostermans “is subject to closing conditions,” which most likely includes permission from relevant authorities. The CEO of Cloostermans, privately owned, Frederik Berckmoes-Joos, has stated that he is “thrilled to be joining the Amazon family,” indicating that the privately held firm supports the transaction.
In contrast, Amazon.com (NASDAQ:AMZN) did not disclose how much it plans to invest in acquiring its new subsidiary; nonetheless, even the company’s silence on the matter provides valuable insight. If the price of acquiring Cloostermans were considered “material,” then Amazon.com (NASDAQ:AMZN) would have been obligated by SEC laws to disclose it. However, because they did not do so, it is safe to assume that the SEC did not consider it “material.”
Amazon.com (NASDAQ:AMZN) has just extended its lead over its competitors in labor- and cost-cutting warehouse automation technologies, which it did at a relatively low cost to accomplish this. That, in my opinion, is an excellent rationale for today’s increase in the price of Amazon stock.
Featured Image – Megapixl © Alexeynovikov
Author Shariq Khan 
