The Allianz Technology trust (ATT) has slashed its exposure to US e-commerce behemoth Amazon, from 7% 12 months ago to just 1% today, due to worries that the firm’s more aggressive business investment will not translate through to higher sales growth.
In October 2018, Amazon CEO Jeff Bezos said Q3 profits at his $880bn firm had been hit in Q3 thanks to increased investment into its next-day delivery service offered to Prime Loyalty customers. Net income fell to $2.1bn in Q3 2018 compared to $2.9bn in Q3 2017. That did not go down well with investors and the stock, which had already slipped 12% from its all-time high in September, fell a further 14%. Walter Price, ATT's San Francisco-based manager, was one of those disappointed shareholders. ATT's stockmarket filings show Amazon accounted for 7.1% of its portfolio - or £33m o...
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