Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Amazon.com (AMZN - Analyst Report) recently announced that it will make its online services for building and running large software applications, Amazon Web Services available from data centers in Western China. Amazon has even entered into definitive agreements with Beijing and Ningxia governments in this regard.

Amazon will not operate these new data centers on its own. Instead, Amazon’s services will be offered through local Chinese data center operators and Internet service providers such as ChinaNetCenter and SINNET. This, in turn, will bring the services under Chinese law and not the U.S. law. This will help Amazon to avoid having to turn over (under the U.S. Patriot Act) any information that customers would upload to the Chinese cloud services. Microsoft Corporation (MSFT - Analyst Report) also follows this practice in China.

Though this is not the first time that Amazon has attempted to enter the market for cloud computing services in China, yet it is believed to be a much more coordinated effort. It is not only trying to pitch for more business from larger corporates but also to capitalize on the expanding community of smaller and medium-sized businesses in the country.

Amazon’s entry will pose tough competition for Alibaba, which is considered to be the e-commerce giant in China.

Amazon has gone on to become a veritable consumer electronics giant from being an Internet retailer initially. The company is planning to refresh its line-up of Kindle Fire tablets in the next few months. But Amazon might not stop there. If rumors are to be believed, the company has many more devices in the works, including a smartphone, an audio streaming device, and an Apple (AAPL - Analyst Report) TV competitor.

Though Amazon’s hardware competes with both Apple and Google , it’s much more destructive for the search giant. This is because Amazon has adopted Google’s Android operating system, but not Google Play.

Currently, Amazon has a Zacks Rank #3 (Hold).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%