Amazon buys Souq.com

Article Excerpt

AMAZON.COM $899.20 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206-266-1000; www.amazon.com; Shares outstanding: 477.2 million; Market cap: $432.0 billion; No dividends paid) has bought Dubai-based Internet retailer Souq.com for a reported $700 million. Souq.com is the best-known name in the Middle East’s online shopping market. It sells consumer electronics, fashion, household items and other goods. E-commerce in the Middle East continues to expand quickly due to the region’s young and tech-savvy population. Kuwait, Saudi Arabia and the United Arab Emirates are among the top countries worldwide for mobile phone penetration. The purchase also lets Amazon set up operations in the region without going through regulatory bottlenecks or having to open up negotiations with new suppliers and vendors. Amazon.com is still a hold. hold…