Should Amazon be bifurcated? Analysts's unique pitch to avoid scrutiny


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Should Amazon be bifurcated? Analysts's unique pitch to avoid scrutiny

Every day, a new business enterprise comes in the line of sight of the American president Donald Trump which causes unease about the American president's next move in relation to the organisation. In recent days, it's been Amazon which seems to have caught the president's interest.

The Jeff Bezos-owned company has been in full-bullish mode growing by leaps and bounds with its market value in the vicinity of the $1 trillion mark and market analysts citing it as a company in whose shares to invest in.

These market analysts have also suggested an idea to ensure that the company doesn't face extreme scrutiny from the country's president regarding anti-trust and regulatory concerns. Analysts at Citi Research have suggested that it would be helpful if Amazon were to be bifurcated into two separate companies, one in the retail establishment and the other continuing as a web-service entity.

One of the company's analysts Mark May cited, "There has been (a) greater noise of late regarding the desire to investigate and potentially regulate the company. By separating the retail and AWS businesses, Amazon could minimize or avoid the risk of increased regulatory pressure."

May also pointed out that any potential splitting of the company would also result in an equivalent break-up of its market value. Proffering numbers, he put the potential valuation of the retail entity of the company at about $400 billion, with about $600 presented as the market value of its web-based continuation.

While Amazon has posted a continued rise in its presence in the American stock market with the value of its shares rising by around 68.5% this year, on Monday when the markets opened, its stock prices slightly slid by around 1.6%.