• Badge

    Hedgeye’s 10 Year Anniversary Super Sale

    Huge Savings on All Hedgeye Products

    Subscribe now & save more than 25%!

Our favorite short in the technology sector, ADT, was already facing myriad headwinds. Now, the home and commercial security company may also have to contend with a new competitor with plenty of resources to take it on in the home security space:

Amazon.

Those in the know about ADT might be a little confused by this threat – the home security company currently has a partnership with Amazon to connect with its Alexa app.

But according to Hedgeye Technology sector head Ami Joseph, Amazon’s new “Amazon Home Services” is signaling that the tech giant could break that partnership.

“If I were the owner of ADT, I would not want this at all—especially given the kind of partnerships that Amazon signs with industry leaders, and then comes in and basically back-doors those companies, mimics those functionalities, and then goes after their entire market,” Joseph says in the clip above.

The still-in-development Amazon Home Services still has a ways to go to match ADT’s connection to 911. But Joseph says that given that it can already alert a homeowner digitally of home intruders, Amazon clearly is looking to enter the home security business – and take away a large portion of ADT’s share of the market.

Watch the clip above for more.

Why Amazon Is Bad News for ADT Security - investing ideas