Has The 'New Economy' Been Defined By Amazon?

Amazon.com, Inc. AMZN plans to launch private label food and additional household items over the next few weeks. Read more: http://www.benzinga.com/analyst-ratings/analyst-color/16/05/7988237/amazons-data-gives-it-advantage-in-private-label-launch#ixzz48qejnlhI "I think this defines the new economy. That's what the consumer wants and Amazon stands out to deliver that. When they want to make money , they could show they can make money," traders told on CNBC . However, Sarat Sethi is concerned on margin expansion of the company. He said though Amazon is taking share in the retail space, "share doesn't mean margin expansion. At some point of time, the margins has to come down." But, Josh Brown said the main purpose of Amazon starting private-label is for expanding margins "If they started selling their own products, they will make more money than carrying Kelloggs and Huggies," Brown told on CNBC. "They are going to be in a position that no other ecommerce company is in," Brown added. At the time of writing, shares of Amazon were up 0.29 percent at $711.97.