*By Michael Teich* Amazon's blog post announcing it will pull the plug on its New York City headquarters is nothing but a bluff to bring politicians back to the negotiating table, said D.A. Davidson Analyst Tom Forte. "Absolutely Amazon's bluffing," Forte told Cheddar Friday. "What they're trying to do is basically get the support of the governor, support of the mayor. They have a loud local minority that's against Amazon coming to New York. When they announced that they were going with Northern Virginia, Tennessee, and New York City for their second HQ, it was an official press release. When they announced that they're reconsidering New York, it was a blog post." Forte believes that Amazon put too much time and effort into selecting New York to reverse course now, and that the Big Apple offers too many strategic benefits in the tech giant's favor. "When you think about New York, it checks a lot of boxes for Amazon as far as why they wanted to have a headquarters here." "It's the largest population in the U.S., so it should have the largest population of talent for Amazon," he added. "And then there's local advantages unique to New York both in the media business and the advertising business, and those are two very important areas for Amazon as far as future growth of the company, so it's hard for me to believe they're just going to throw in the towel." Forte has a "Buy" rating and $2,450 price target on Amazon ($AMZN) shares, and continues to be bullish, given the company's ability to generate profits from its highest growing businesses. "The overlying story for Amazon is we call it Profit Incorporated. Their cloud computing, their advertising, their third-party retail, their fastest-growing businesses are their highest margin businesses, and that's why you're seeing much better than expected earnings per share from Amazon." For full interview [click here](https://cheddar.com/videos/d-a-davidson-calling-amazons-bluff-to-yank-nyc-hq2).

Share:
More In Business
Tony Awards draw best audience in 6 years for CBS
The Tony Awards on Sunday lured 4.85 million viewers to CBS, its largest broadcast audience in six years. CBS says Monday that Nielsen data shows the telecast — hosted by “Wicked” star Cynthia Erivo — scored a 38% increase over last year’s 3.53 million viewers. That’s the largest audience for the Tonys since 2019, when the telecast that year nabbed 5.4 million viewers and “Hadestown” was crowned best new musical. The latest version also had to compete with the second game of the NBA Finals, between the Thunder and Pacers,
Apple unveils software redesign while reeling from AI missteps
After stumbling out of the starting gate in Big Tech’s pivotal race to capitalize on artificial intelligence, Apple tried to regain its footing Monday during a developers conference that focused mostly on incremental advances and cosmetic changes in its technology.
DA: Suspect in UnitedHealthcare CEO killing said he ‘had it coming’
Six weeks before UnitedHealthcare CEO Brian Thompson was gunned down outside a Manhattan hotel last December, Luigi Mangione mused about rebelling against “the deadly, greed fueled health insurance cartel” and expressed that killing the executive “conveys a greedy bastard that had it coming."
Load More