*By Michael Teich*
Amazon inked a new partnership with American Express, but don't expect the financial industry to be the next area the tech giant jumps into.
"The thing that people misunderstand is that tech companies don't want to manufacture financial products," said Lex Sokolin, Global Director of Fintech Strategy at Autonomous Research. "It's about making the ecosystem and the platform more powerful, and finance is just a feature inside of that."
American Express announced Tuesday it will launch a co-branded Amazon credit card for small businesses. The move accelerates Amazon's foray into financial products and strengthens its position as a lender. The goal, Sokolin said, is to enable small businesses to finance their activities, getting more products on Amazon's platform, and ultimately driving more commerce.
Plus, the opportunity costs of devoting itself to the financial industry are too high.
"Amazon has tremendous high-growth, super interesting, blue oceans to explore,” he said. "They could be investing in building a mortgage business, or they can build artificial intelligence business."
For the full segment, [click here.](https://cheddar.com/videos/amazon-bolsters-financial-prowess-with-new-credit-card)
Cheddar senior reporter Michelle Castillo looks into the peer-to-peer fashion rental platform Wardrobe and how the service is helping to cut down on waste.
From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
Cheddar has been covering the biggest news of the week with some of the biggest names in the biz. In case you missed it, we've pulled together some of the highlights that will keep you informed as we get ready for the week ahead.
Pinterest combed through its millions of searches to determine the top trends for 2022. Its finds included the resurgence of goth fashion, decorating your home with your pandemic pet in mind and the rise of "alt bashes," parties that celebrated life's quirky moments from divorces to empty nesters. Pinterest head of core research Larkin Brown joined Cheddar News' Michelle Castillo to discuss this year's report.
Prices were up 6.8 percent year-over-year In November, according to the latest consumer price index from the U.S. Bureau of Labor Statistics.
A late wave of buying sent stocks to solid gains on Wall Street Friday, sending the S&P 500 to another record high.
Starbucks workers have voted to unionize at a store in Buffalo, New York over the company’s objections, pointing the way to a new labor model for the 50-year old coffee giant.
A Massachusetts cannabis company is celebrating National Brownie Day with what it believes is the “largest THC-infused brownie ever made.”
The number of Americans applying for unemployment benefits plunged last week to the lowest level in 52 years, more evidence that the U.S. job market is recovering from last year’s coronavirus recession.
Stocks closed lower on Wall Street Thursday as investors tapped the brakes after three days of gains.
