Amazon Buys Diapers, This Deal Smells Likes Roses (AMZN)

Amazon.com, Inc. AMZN announced this morning it was buying Diapers.com parent Quidsi for $545 million, including debt. This is potentially a huge deal for Amazon, as diapers are the single largest expense for new parents. If Amazon can add cheaper diapers to its portfolio of products, then stay at home parents can order diapers and DVD's. It's another smart move by Amazon's management, led by Jeff Bezos and I say bravo. This is a great move for shareholders of the ecommerce giant, and will pay off sooner rather than later. Disclosure: no position in AMZN