An old blue chip – Procter and Gamble – is a mess these days.
Over the last 40 years the stock has always recovered from bear markets with all-time high prices. This recovery has left $PG behind (it never hit a new all-time high) and the stock is now reeling.
They are under assault from Amazon and the rise of the microbrands.
I believe it is overdone, but have not put on a trade here.
Amazon does not want to kill Procter & Gamble…at least quickly. There are a lot of advertising and promotional dollars Amazon would like to extract from them marketing inside/on Amazon.
Over the next 10 years, the Company can also buy 1,000 rising microbrands and go directly to the customers themselves.
The whole CPG (Consumer Product Goods) sector is going to see explosive deal action and volatility for the forseeable future.
Also published on Medium.