Happy (Fashion) Friday, friends! I for one I am very much looking forward to the weekend. The first week back to work after two weeks of holidays seemed especially brutal. I’m rounding out the week with a fun post for me, since I’m sharing a new online discount shop, Jet, plus its potential stock market implication. A TDT double whammy, if you will.
Jet is a new, online wholesale shopping club started by Marc Lore, the guy behind Diapers.com. Long story short, Amazon (AMZN) realized that new parents really like saving money, slashed its prices on diapers, and bought Lore’s company for a “bargain” price of $550 million. Lore then worked for Amazon for two years before deciding to take his revenge by starting Jet. Basically, he’s the business version of Emily Thorne.
Jet will sell a range of goods for 10-15% below other online prices. Like Costco (COST), Jet plans to make its money from its $49.99 a year membership fees, and aims to pass all possible product savings onto customers.
Normally, I would say wait and see if you’ll get $49.99 worth of savings each year before signing up, but I’m letting you guys know about it now because if you sign up early you can get 6-months of free membership. Even longer free memberships are up for grabs by sharing their link. You can sign up for Jet early access here (via my link 😀).
The one drawback I see now is that Jet is unlikely to replicate Costco’s amazing free sample experience…
Now that we covered the discount shopping portion of Fashion Friday, let’s talk about the stock market implication. Jet is not publicly traded (though it’s raising private money like crazy), but it may impact its dear frenemy, Amazon.
I’m sure I’ve said this on the blog before, but I’ll say it again; I wouldn’t go near Amazon with a 10 foot pole right now. The company is so focused on expanding that it’s losing money each year. Combine that with its sky-high price to earnings (P/E) ratio – about 5 times that of Facebook (FB) and Netflix (NFLX) – and I have no idea why Amazon’s stock price is as high as it is.
If Jet is successful, it could put even more pressure on Amazon to lower its prices, and therefore its profits. The fact that Lore worked for Amazon, and knows a few secrets, only helps his competitive bid. I wouldn’t buy any Amazon shares right now, and I’m even considering selling a few shares short.
Have a great weekend!
TDT note: This post is not sponsored by Jet, and like all of my posts, all opinions are my own. I just wanted to pass along the news and give you the chance to get a free period of membership.