Amazon to stop support for communications service Chime next year
1. Amazon will cease support for Chime, impacting its communication portfolio. 2. No new customers will be accepted post-Wednesday, limiting future growth.
FAQ
Why Bearish?
The withdrawal from Chime could indicate strategic retreat, negatively affecting investor sentiment. Past examples, like the discontinuation of Amazon's Fire Phone, showed market reactions to service failures.
How important is it?
While not a primary revenue driver, Chime's closure reflects on Amazon's strategic choices. The decision may hint at reallocating resources, which can sway investor confidence.
Why Short Term?
The immediate cessation of support will likely affect perception and stock price shortly. Similar to past product discontinuations, the reaction can be swift.