“Brands don’t need Amazon”. Nike’s decision to no longer sell merchandise through Amazon shows that strong brands are realizing that traffic driven to their own site is self-sustaining, more profitable, and actually brand enhancing

Jefferies analyst Randy Konik said “Amazon had a delivery speed advantage, but that advantage has compressed.”

Evercore ISI analyst Omar Saad wonders if other brands “will follow” Nike’s lead.

It is clear to see how cutting out Amazon and focusing on direct sales could significantly reduce costs for Nike and other brands. Nike was up 2% at the close with a PE of 31x current year estimates.

This is not a recommendation to buy or sell. Stocks are risky and not suitable for everybody. Please do your own research.

https://www.cnbc.com/2019/11/13/brands-dont-need-amazon-nikes-departure-could-prompt-others-to-go.html