Amazon’s announcement Friday morning of its intention to acquire Whole Foods for nearly $14 billion sent shockwaves through the tech, retail, and financial industries.
The acquisition, Amazon’s largest to date by a mile, caused shares of other traditional grocery giants to sink — Target was down nearly 10 percent, Kroger was down 14 percent, Costco was down 6 percent, and Walmart, which announced its own big acquisition Friday, was down 5 percent.
— Camila Russo (@CamiRusso) June 16, 2017
CNBC’s Jay Yarow, who called the acquisition “brilliant,” explained why those companies are all seeing their shares fall Friday.
“Amazon is a fierce competitor,” he wrote. “If you work in the grocery business, you’re looking at what happened to bookstores, you’re looking at what’s happening to the retail industry, and you’re thinking, ‘Uh oh, I’m next.'”
Meanwhile, Wall Street seemed to like the deal for Amazon, as its shares are up more than 3 percent.
Analysts from Baird noted that the Whole Foods takeover “fits Amazon’s general criteria for an acquisition, which includes a strong brand and customer value proposition.”
— Carl Quintanilla (@carlquintanilla) June 16, 2017
Amazon has until this point developed its own brick-and-mortar bookstores across the country, and tested grocery concepts with two AmazonFresh Pickup sites and the experimental Amazon Go store in its hometown. Amazon has also rolled out the AmazonFresh grocery delivery service across the country.
Some are skeptical of the pending deal, with one analyst telling CNBC that “Amazon seems to be moving further & further afield from their core competency.”
Others wondered how President Trump may react to the deal, given his comments last year about his antitrust concerns with Amazon.
The hot takes were on fire Friday morning; here’s a sampling of the more funny and intriguing tweets:
Amazon did not just buy Whole Foods grocery stores. It bought 431 upper-income, prime-location distribution nodes for everything it does.
— Dennis K. Berman (@dkberman) June 16, 2017
The Amazon question. Can they get your groceries to you faster than you can get to the store to shop in an Uber /lyft world ? Yes
— Mark Cuban (@mcuban) June 16, 2017
AMAZON, 1998: hello we sell books but online
AMAZON, 2023: please return to your Primehouse for your nightly Primemeal, valued Primecitizen
— KRANG T. NELSON (@KrangTNelson) June 16, 2017
Bezos: "Alexa, buy me something from Whole Foods"
Alexa: "Buying Whole Foods"
— Jeff Lewis (@ChicagoPhotoSho) June 16, 2017
in the future we get our healthcare, food & electricity from either google or amazon in exchange for data https://t.co/jD329tLEqP
— Desus Nice (@desusnice) June 16, 2017
Amazon reportedly spent $13.7 billion at Whole Foods today, and they still had to stop by Safeway to get everything on their list…
— Tommy Tighe (@theghissilent) June 16, 2017
But seriously, Google has to buy Trader Joe's now. I mean someone has to.
— Rafat Ali (@rafat) June 16, 2017
"dooo it jeff….push the whole foods amazon dash button…dooo it…" pic.twitter.com/TtYG9XTPs6
— darth:™ (@darth) June 16, 2017
Wow. Amazon buys Whole Foods, Walmart buys Bonobos. Tanks on the lawn.
— Benedict Evans (@BenedictEvans) June 16, 2017
Perspective: Amazon just bought Whole Foods for $13.7 billion, which is close to the amount of revenue the NFL pulled in in 2017.
— Darren Rovell (@darrenrovell) June 16, 2017
Whole Foods CEO in 2015: Amazon is going to get destroyed in groceries.
Whole Foods CEO in 2017: Hello Mr. Bezos, nice to work for you. pic.twitter.com/5YpMU1HNyQ
— Ryan 2.0 (@RMac18) June 16, 2017
Don't let Amazon buying Whole Foods distract you from the fact that you can get a masters degree for the price of one tub of cashews there
— Charlotte Wilder (@TheWilderThings) June 16, 2017