Holy hell, it’s been a year for Amazon. The old online bookstore of Jeff Bezos disbursed 13,700 million dollars to buy a lot of grocery stores, that speaker with whom you speak in your living room that makes Amazon is very popular and a lot of Amazon server farms generate more s $ 10 billion in revenue annually.
The confluence of all these things has led to an incredible increase in its shares for the year, one that could be even more impressive than Apple’s slow march towards a $ 1 billion market limit (assuming it develops). the history of the iPhone X. the way they wait).
Amazon is not nearly as big as Google or Apple, but at the same time, its core business is an online retail operation that operates with narrow margins.
For the most part, Bezos has gained the benefit of Wall Street’s doubt, and his strategy of happily investing in new operations seems to be working as expected.
Let’s go to the table:
Amazon’s impressive 2017
And with all this, its founder and CEO Jeff Bezos is fleeing to become the richest human of the Local Group.
Amazon is investing in many wild operations, like buying Whole Foods, and all these great movements are beginning to merge into something that really makes a bit of sense as the company seems to become the backbone of the way that people run a lot. of your daily life through the Internet.
Whether buying things online, buying groceries, watching movies, listening to music or even using services running on Amazon’s invisible infrastructure, the real Amazon is becoming an absolute force in the everyday life of almost every consumer in the world. Internet.
So, as Amazon did all things this year, let’s review each of them little by little, probably starting with the most important one.
Amazon’s server business is booming
If it were not for AWS, Amazon probably would not have posted a profit in the string of quarters that did. We have already noticed this before, but here is the money table again:
Amazon’s AWS Shines
While Amazon is increasingly facing the great competition of Microsoft’s Azure, as well as Google Cloud, it was one of the original infrastructure operations that gave rise to modern Internet services, helping startups to take off with servers what they did not do They have to buy themselves.
It was also one of Amazon’s most ambitious bets, and one of the first examples of how Amazon was willing to break into new markets orthogonal to its core business model.
The bet paid off, with AWS now on track to generate more than $ 10 billion annually. More importantly, those $ 10 billion per year come with a pretty healthy margin, although, over time, that margin may fall.
For the moment, however, it is an impressive business compared to the profits that Amazon could generate from its retail operations and a good data point as its media services such as video or music begin to develop.
And, as usual, recurring revenue is a story that Wall Street loves. Amazon is a company that people often tell you not to bet, and their shares rose more than 50 percent in the year thanks to a number of companies that appear to be showing growth and the recent capacity of the company. to get a benefit Amazon can thank AWS a lot for that.
Amazon game for vocal Internet
Amazon also said that Echo, its voice-enabled loudspeaker, was the best-selling product on Amazon for the holiday season, with millions of devices sold.
This is a big deal for Amazon, since it may have entered into one ofthe best unique interfaces for the Internet as a whole, in addition to further reducing the friction to buy products on Amazon.
And for a service that is essentially the center of online commerce in the US. UU., Having an item sold by Amazon is also a good aspect for the company.
Even if the devices are relatively cheap, blocking consumers in Amazon’s ecosystem is ultimately much more valuable than selling a group of speakers connected to the Internet.
Amazon Prime gives Amazon the opportunity to convert its buyers from buyers once in a bit to a reliable stream of recurring incremental revenue.
Amazon does not do much in terms of revealing how Prime works, but at the same time, a reliable recurring revenue model is something that Wall Street loves, and something that will keep them happy and out of Bezos.
We’d love to show you a painting here, but the best we’ll get is some kind of big vague Amazon number.
So, for now, be skeptical, but suppose it’s big and has many potential ramifications for the future of the Internet (as do many of Amazon’s operations), especially in companies like Google and Apple nip. on his heels.
Amazon buys many grocery stores
Amazon made one of the biggest and most dazzling acquisitions of the year, second only to Broadcom’s decision to acquire Qualcomm and consolidate the fabless semiconductor market into a single unit (which is an equally big deal).
It acquired Whole Foods, a fashion chain that has a solid brand, for $ 13.7 billion, and it took place! This was wildly, in a very Amazonian, expected and unexpected way (and definitely not good for Blue Apron, which was preparing to go public at that time).
Whole Foods offers Amazon a set of local landmarks for groceries, but also stores to get their products to consumers.
You can apply your large amount of data to reorient the prices of products in such a way that they attract consumers to their basic products and interest them in other products. And, perhaps, more importantly, you can place your own products in those stores, like the Echo.
While this gives Amazon a great deal of business right away, it also offers Amazon another chance to lock up consumers in the Jeff Bezos Sphere of Influence.
We still do not know all the ramifications here, but it’s another example of how Amazon was ready to enter a new market that makes sense in Amazon’s grand scheme.
Amazon, in the end, is preparing for a future where it serves as the backbone of how consumers interact with the products they use in their daily lives that are, in some way, connected to the internet.
These movements may seem drastic and have a very long landing strip, but if you ask a lot of people in technology what stock they would keep from the FAANG group (Facebook, Apple, Amazon, Netflix and Google), you’re probably going to look for Amazon as an answer.
And then they will reference that Tweet whenever that indicates that Amazon grew by one thousand percent since it became public (because, in retrospect, I think we should have seen this coming, and the future developed exactly as it was supposed to) . So as we get closer to 2018, we’ll see if Amazon really fulfills that destiny.
In addition, Amazon should buy a coffee shop
Seriously, Jeff, buy a coffee home. Maybe I do not spend as much as Nestlé in Blue Bottle. Or do it Anyone. There can only be good things that arise from this.