Activist Investor Daniel Loeb Says Market Fails to See $1 Trillion of Untapped Value in Amazon (AMZN)

Activist investor Daniel Loeb, whose Third Point LLC had a stake at Amazon.com, Inc. (NASDAQ: AMZN) valued at $784 million as of the end of the year, told investors that he sees around $1 trillion in untapped value at the company, The Wall Street Journal reported.

During a private call with the hedge fund’s investors, Loeb said that the market is failing to recognize the full value of the company’s two disparate businesses, its core e-commerce business (worth some $1 trillion) and its Amazon Web Services (having an enterprise value of more than $1.5 trillion), as the company’s current market value is around $1.6 trillion.

According to people familiar with the matter, Third Point has shared with other hedge funds in recent weeks its views on why it believes a spinoff of AWS could make sense, including that it could help mitigate regulators’ concerns about Amazon’s market power.

You May Also Be Interested In

• NBA in talks with Amazon, Youtube on new streaming package - WSJ
• Amazon to invest $11 billion in Indiana to build data centers
• Amazon Prime Video to exclusively stream two NHL seasons in Canada