The JB Hi-Fi Limited (ASX: JBH) share price has fallen 1.9% today compared to a 0.3% fall for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) index. Here are a couple of reasons why the shares could be falling today:
- JB Hi-Fi's shares were among the market's top performers on Tuesday, soaring 6.8%. That rally was likely driven, at least in part, by the 'underwhelming' debut of Amazon.com (NASDAQ:AMZN) in which many consumers expressed their disappointment with the range of products available on the global ecommerce behemoth's site, as well as the prices. Today's decline could simply be something of a reversal after yesterday's strong gains.
- The fall in JB Hi-Fi's share price today could also be due to an announcement from Amazon today. Amazon said its launch in Australia was its biggest opening day in the company's history; this may have reminded investors about the long-term threat that Amazon no doubt poses for the retail space. The Harvey Norman Holdings Limited (ASX: HVN) share price is trading lower today, as well.
Indeed, I wouldn't be game to bet against Amazon. While I don't think the retail space is entirely off limits due to Amazon's arrival, I would certainly exercise caution.
