I had to wait a few days to post this because, ironically I sold a little bit of shop earlier this week, (required rules for a CMF) but I didn’t want to forget to add one thought to the SHOP discussion.

There was a lot of discussion earlier this week about revenue growth slowing down and the fact that the stock price was getting ahead of itself due to potential marijuana sales and the benefits to SHOP. One thing that I didn’t see in that discussion which could be causing the stock price appreciation, was the political pressures on Amazon due to monopolistic concerns. I have been saying for some time that if the government comes down on Amazon due to it’s size and scale, that SHOP could be a big beneficiary. I think the recent stock price increase is at least partly due to that thought and the recent governmental and political pressure on the largest Tech stocks like Amazon.

I am not sure how realistic that reality is and therefore I sold a small part of my position but the threat and benefit to SHOP can certainly be more substantial and real than the marijuana story. Just thought i would add my 2 cents to the conversation.

I do think that SHOP, in some small way adds a diversification benefit to Amazon ownership.

Long SHOP and Amazon