Amazon entering the price comparison website market isn't as concerning as MoneySuperMarket.com Group PLC's share price movement, analysts at Liberum gave suggested,
Shares in MoneySuperMarket.com fell 15% yesterday as Amazon said it was entering the price comparison website market.
Upgrading the London-listed stock to a ‘buy’, Liberumsaid that while the entrance of Jeff Bezos’s company is “clearly an added negative from a competition risk perspective,” it is not to the “extent the share price reaction implied.”
“The key starting journey for most consumers remains search, which diminishes one of Amazon’s key advantages and levels the playing field.”
Liberum points to Googles “historic failure” to enter the UK market in 2012 with Google compare, before closing the service in 2016, as a sign it will be a “difficult task” for Amazon.