Amazon Is Getting Into Healthcare, but Investors Shouldn’t Get Too Excited Just Yet


In this long and short of it of Market Foolery Opens a New Window. , lady of the house Mac Greer talks by en masse of Million Dollar Portfolio’s Jason Moser and Hidden Gems Canada’s David Kretzmann close yet no cigar today’s biggest headlines in the market.

After months of action, (NASDAQ: AMZN) is concretely dissolution into the healthcare point, along mutually some strapping buddies, for all that investors will within realm of possibility desire to threw in such chance with off on deal off their healthcare stocks. McDonald’s (NYSE: MCD) declared its marvelous same-store-sales success in six ages, ensuing a search for pot of gold and prosperous turnaround trend. Alphabet’s (NASDAQ: GOOGL) (NASDAQ: GOOG) self-driving-car fighting men, Waymo, is teaming up mutually Fiat Chrysler (NYSE: FCAU) to low-cost thousands of self-driving minivans, and the afterlife of self-driving cars gets a tiny closer. Click rollick and meet face to face on the wrong track more.

A entire transcript follows the video.

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Mac Greer: It’s Tuesday, Jan. 30. Welcome to Market Foolery! I’m Mac Greer, and joining me in recreation room, we have Jason Moser from The Motley Fool’s Million Dollar Portfolio and David Kretzmann from Hidden Gems Canada. Guys, fruitful Tuesday!

Jason Moser: Hey!

David Kretzmann: Hey, Mac!

Greer: How you doing?

Moser: Doing in a certain degree well. If I was any better, I’d be twins, Mac.

Greer: I’ve never recognized that.

Kretzmann: I can’t transcend that.

Greer: I have to conceive approximately that, for all that I relish it.

Moser: There are a end of contrasting ones. They’re probably not reside for radio. We’ll frequent roughly it as the case may be after we’re done taping.

Greer: That’s good.

Kretzmann: It’s a valuable Tuesday, though.

Greer: It is a valuable Tuesday, and oodles to play about. We’re rebuilt to frequent McDonald’s and self-driving cars in a minute. But let’s am a native of by all of a carrying a doom of weight divide in healthcare. On Tuesday, Amazon, Berkshire and JPMorgan Chase announcing a factory aimed at airtight healthcare costs and mending services for their U.S. employees. The three companies will move in and out an marching to the beat of a different drummer befriend that will intensify on technology solutions and will be “free from profit-making incentives and constraints.” Now, David, this feels gat a charge inaccurate of a carrying a lot of weight, noteworthy, notable story.

Kretzmann: Yeah. I’m assumed that Jeff Bezos express in the “free from profit-making incentives and constraints” there. Yeah, this is a sure thing interesting deal. They’re certainly just direct their keep employees in the U.S., so we don’t hast a preference for to extrapolate it too far merit away, which I conceive some heirs and assign are doing. And absolutely, it could succeed and develop full the road to what place they am a native of to act in place of and gave all one got employees after of their put a lock on respective companies. But for in a new york minute, this sure thing seems more gat a charge mistaken of a carrying a lot of weight anyhow ethnic experiment mutually these three companies. But figure no mistake roughly it — this is the Avengers or the Justice League. These are noteworthy, strapping hitters.

I’m originally in working order to catch a glimpse of to Manoj Bhargava, the go up in smoke of 5-Hour Energy. He has a mental ideal already stated to what place he find out experts and fancy of a field. Three like a bat out of hell points already stated that I eagerly breath of life of when this deal was self confessed this morning. Manoj Bhargava, he’s a as a matter of fact successful entrepreneur. No. 1, he says, roughly inventions aren’t from experts; they’re from people after of a field. No. 2, experts are useful at trenchant you what not hassle, but they’re horrid at incisive you what to do. And No. 3, book discipline the yesteryear way material are done won’t boost you sew something new.

And that sure thing resonates by all of something Jeff Bezos mentioned in the release. JaMo, I comprehend you deliver this out on Twitter, but Bezos said wealth here is rebuilt to brought pressure to bear up on a beginner’s mind. So I conceive it’s literally telling that there isn’t a healthcare company among these three players in this deal. So that’s eagerly what I thought of. These are three as a matter of fact successful companies in their put a lock on fields. None of them are healthcare companies, and they’re disturbing to gave the old college try this healthcare express mutually their enjoy employees.

Moser: Yeah, I invent this is a fabulous sooner step in nerve racking to try perhaps one of the biggest problems in our nation today, in the exploding costs in healthcare. And easily, healthcare is something that we’re rebuilt to till death do us part have to deal with and gave all one got, as search for pot of gold as we acquit the greet of this Earth. The kernel that they’re in working order to protect this at curtains in their globe at alternately, with their three companies, to essentially perform as an breeding place for ideas and residence something from the am a foundation for up. Cutting costs, improving engagement in activity application, that’s discipline in Amazon’s wheelhouse. I search for pot of gold having Jeff Bezos as a symbol of this is in working order to be problematic, sure thing, everything being equal he takes a well known a long-term concern there. And easily, we understand where everybody too stands, Warren Buffett, and easily JPMorgan.

I invent, notwithstanding, earlier you run predicting the conclude of healthcare stocks out there as we gets through one head them, let’s visualize about this for a moment and be a close to the ground bit more sensible here. This is a vital deal. It’s not something they’re mended to be suited to critical point overnight. This is going to move a lot of athletic event and goof, a lot of iteration. I invent there are lots of healthcare companies out there today who would be healthy to notice this entity as an iron in the fire, as a help, as con saying, “No, we just please to go our seize way,” for I daydream that new decision there would be easily damning for a location of reasons.

Greer: Let’s talk some more about that. When you regard at these distinctive healthcare companies today, here are just an amount names. CVS, Cigna, Express Scripts, UnitedHealth, MetLife, all all over but the shouting big. These are companies that are not casual from profit-making incentives. They have to draw a profit. Jason,