Seattle-based e-commerce and cloud computing company Amazon.com has acquired healthcare start-up Health Navigator. The parties did not disclose the financial terms of the transaction.
Last year, the Big Four technology company bought online pharmacy PillPack. Health Navigator is Amazon’s second acquisition in the healthcare sector.
The company said the purchase is a part of its Amazon Care employee offering, which gives its employees access to healthcare facilities without appointments.
Founded in 2014, Health Navigator and provides diagnosis and treatments on its digital platform. The company’s CEO is its founder David Thompson.
Earlier this week, the e-commerce giant reported earnings for the third quarter of the year that missed expectations, even though sales figures were better-than-expected. Ahead of the holiday season, Amazon expects to be soft. Shares fell 7% after hours on the news of earnings and guidance misses.
Amazon’s new one-day shipping for Prime members is forcing the retailer to spend billions in transportation and warehouse infrastructure and buy more inventory to bring popular products closer to customers.
In the third quarter of 2019, Amazon reported a profit of $2.1 billion, or $4.23 per share. Analysts estimates were way higher at $4.62 per share. Last year, the company posted profit of $2.9 billion, or $5.75 per share. Sales stood at $70 billion, up 24% from last year. Yahoo Finance’s estimates were $68.8 billion.
Meanwhile, Amazon Web Services (AWS) sales growth slowed to 35% compared to 37% reported the previous quarter. AWS’s profit margins are under pressure as the competition in the cloud services segment is increasing.
In addition, Amazon’s sales prediction for the next quarter was of up to $86.5 billion, way below the $87.4 billion Wall Street expected.
Shares in the online retailer are trading mostly flat at around $1,734.99 apiece in
