AMAZON TAKING OVER THE WORLD
Amazon Continues to Climb
As he does every year in his letter to shareholders, Jeff Bezos stressed the importance of putting customers first and keeping a startup mentality, attaching a copy of his original letter to shareholders from 1997. In his letter this year, Mr. Bezos cited the importance of focusing on customers, avoiding proxies, adopting outside trends, and making fast decisions – them he has hit on in the past. “We can have the scope and capabilities of a large company and the spirit and heart of a small one. But we have to choose it,” Bezos wrote.
Amazon in recent years has rapidly grown beyond pure online retail, building out a massive cloud-services business, moving into movies and other content, and developing devices like the artificial-assistant powered Echo, which Bezos said the company continues to struggle to keep in stock.
Artificial intelligence is not only using artificial intelligence to enhance the Echo (named Alexa), but it’s also using it to deliver goods more quickly, and create new tools sold to others through its cloud-computing division. Changes ushered in by artificial intelligence and machine learning will help the companies that embrace them and put up barriers for those who don’t, Bezos added to his letter.
Amazon is also expanding their global reach. They have gained a wallet license in India as part of a move that will allow the U.S. e-commerce giant to offer a paying experience with less friction in the country. Currently, Amazon customers must go through two-factor authentication processes for each purchase they make. That’s in accordance with national law. A wallet license could change things by allowing customers to deploy/top-up their wallet for future purchases, but it also gives Amazon an effective channel for cashback offers, faster refunds and other incentives.
The company, which has spent $5 billion to develop its India business, used a 2014 investment in QwikCilver to enable gifting and gift cards using the startup’s wallet license. Now, some are speculating that the gifting service – which was rebranded to Amazon Pay in December – is where Amazon’s own license will be deployed. Watch out for Amazon! They are on the rise.
The stock has also been on the rise but don’t be fooled by the noise and the backing that Amazon gets. The company is the best in the business but well overvalued at this point. We love to be customers of Amazon but not buyers of the stock at these levels
Keep those stops tight
Todd “Bubba” Horwitz
IN ASSOCIATION WITH