Amazon's Move in Brazil Rattles Some Online Retail StocksBy
Companies exposed to tech giant’s threat taking a hit
Online trader MercadoLibre declines as much as 8 percent
The “Amazon effect” on retailers reaches across borders.
Shares of a several e-commerce companies listed in the U.S. and Brazil are falling on speculation Amazon.com Inc. may soon expand into the South American country. An earlier report by Bloomberg said the tech giant is recruiting for a number of positions in Brazil, leading some to believe it has its sights set on Latin America’s largest market.
The Amazon-led surge in online shopping has been blamed for everything from tepid inflation to a wave of retail bankruptcies in the U.S.
Online trading site Mercadolibre Inc. dropped as much as 9 percent Thursday. Brazil accounted for 54 percent of its total revenue in 2016. Magazine Luiza and online sporting goods retailer Netshoes Ltd. also fell.