Amazon’s stock fell as much as 7 per cent on Wednesday after the retail giant said it would no longer compete against Apple and Google in online sales.
The company said it was no longer a competitor to Apple or Google, and that it was focusing on growing the “stronger Amazon ecosystem” and creating new ways for consumers to buy from Amazon.
The news comes as a growing number of companies including Google, Amazon and Microsoft are expanding their online presence, including launching rival services in some areas.
The announcement is likely to add fuel to the fire that has consumed Amazon over the past few months.
In February, Amazon said it planned to add its own payment systems and payment service to its platform.
In March, it said it wanted to build a “cloud-based shopping ecosystem” to help customers buy and sell on its platform, but has been bogged down in negotiations with retailers.
In May, Amazon was forced to abandon plans to add rival grocery delivery service UberX to its service.
In September, Amazon announced it would move its warehouses out of the United States to a facility in India, in a move that was expected to be worth $1.5 billion to the company.
Amazon’s stock has fallen in the past year as competition from other online retailers has increased, and analysts have warned the company will struggle to stay relevant in the increasingly crowded online shopping market.
Analysts at Morgan Stanley said Amazon could suffer as its market share in online retail declines.
The analyst said the “newly acquired” Amazon had struggled to make significant headway in the online shopping space.
“Amazon’s focus on its own retail platform, as well as a focus on expanding its e-commerce business, has led to Amazon’s retail and logistics business becoming the most competitive business in its industry,” the analyst said.