Amazon’s deal to acquire Whole Foods is causing waves all across Wall Street. And, this goes way beyond the grocery industry as it is affecting other Seattle tech companies.
Impinj, a Seattle-based company in the radio frequency identification (RFID) industry that connects items to the internet, has seen its stock rise on news of the deal. Its stock opened at an all-time high Friday and it has continued to rise throughout the morning, up more than 13 percent on the day.
Why would a large deal such as the Amazon retail deal have an impact on Impinj? It starts with a connection between the two companies. Amazon is a member of RAIN RFID, an alliance co-founded by Impinj in 2014 to spread awareness of RFID technology, which can be used to keep track of inventory in retail environments. To make it even stronger. Amazon and Impinj are co-hosting a meeting of this group in Seattle next month.
Many outsiders are thinking technology upgrades could be on the way at Whole Foods stores following Amazon’s acquisition. There is speculation that a company like Impinj could bring its RFID technology to Amazon-owned Whole Foods stores.
In prior news such as this, Impinj has gotten a bump from Amazon’s retail ambitions before. When Amazon announced the checkout-free Amazon Go concept, patent filings indicated RFID technology could be a part of the offerings in the store. Amazon later said RFID would not be a part of Amazon Go. I guess as long as there is news of such importance, stocks rise on those RFID companies associated with it!