Amazon (AMZN) Makes Biggest Purchase Since, Breaks Out

The trading action in shares of Amazon (AMZN) was quite bullish today following news the company made its largest acquisition since the billion dollar acquisition of in 2009.  Amazon acquired Kiva Systems for $775 million which is perhaps one of the most interesting purchases because it wasn’t just another internet retailer.  Kiva Systems makes robots that increase warehouse efficiency and these robots had been used by companies like and both of which Amazon acquired last year.  Considering Amazon’s largest expense is its warehouses, the move is a good one and could help get products to customers faster while padding the bottom line by helping bring products to employees with R-O-B-O-T-S.  Interesting company.. Fast Company named them one of 50 of the most innovative companies of 2012.

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“Amazon has long used automation in its fulfillment centers, and Kiva’s technology is another way to improve productivity by bringing the products directly to employees to pick, pack and stow,” said Dave Clark, vice president, global customer fulfillment, “Kiva shares our passion for invention, and we look forward to supporting their continued growth.”

It looks like the Street feels Amazon didn’t pay too much, because shares broke out from a bottoming pattern today with good volume.  A move like this indicates a strong likelihood that a bottom in shares of AMZN may be in.  Have a look at the chart..

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