Watch: The Titan Flash on Amazon's acquisition of One Medical

Wednesday, Jul 27th 2022

Commentary

Amazon acquires One Medical in an all cash deal and its impacts are far greater than streamlined primary care

Titan’s Takeaway: Amazon’s recent acquisition speaks to a growing interest in a healthcare sector worth nearly 20% of GDP. In our eyes, the move could accelerate Amazon’s ambitions of  disrupting the healthcare industry and building a digital-health ecosystem.

Jack, from your Investor Relations team, discusses Amazon's recent acquisition of One Medical and the potential downstream impacts.

Amazon announced plans to buy health tech provider, One Medical, last week in an all cash deal for $3.9 billion. A technology-enabled primary care service, One Medical operates a collection of medical practices in 29 markets with over 750,000 members.

Amazon’s foray into healthcare is years in the making- they acquired Pharmaceutical startup Pillpack in 2018 and have increased investment in pharma and telehealth. 

For Amazon, the acquisition is a considerable step toward their ambitions of a digital healthcare ecosystem. The deal also speaks to a growing emphasis on customer retention as they build robust offerings for their prime members. 

Studies show that Prime members spend 2X more on an annual basis compared to non-prime customers. With over 140 million Prime members around the globe, adding affordable healthcare offerings isn’t a mission confined by borders and may widen their moat. 

However, for a company that controls roughly 13% of the U.S. online advertising market, the deal may raise ethical questions on medical and privacy data as well. My Alexa already knows when I order my paper towels, will she remind me to take my pills now? Are there guardrails in place to protect personal health data? 

With this said, we believe the current healthcare system is ripe for innovation and Amazon’s track record and balance sheet in partnership with a well-established community of paying members may be the combination capable of breaking the status quo.

Given Amazon's durability, true moat, and robust balance sheet, if Amazon wants something…it usually can get it. We haven’t underwritten the impacts in our base case and view this as a nice call option for future growth - for the time being we are more than happy with Dr. Amazon putting on their scrubs.

Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

IRA vs. Brokerage Account: What Are The Main Differences?


What Is a Trust Fund and How Does It Work?


What Is a Traditional IRA & How Does It Work?


Can an IRA Be Placed Into a Trust?

Let's Get Started

Ready to become a client?

Create an account with us in two minutes.

Or scan to get the app

We're building the best investment platform, ever

Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice. Check the background of these firms on FINRA's BrokerCheck.

© Copyright 2022 Titan Global Capital Management USA LLC. All Rights Reserved.