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Trump's Support for Brick & Mortar Stores Hits Amazon Stock
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Shares of Amazon.com, Inc. (AMZN - Free Report) plunged 4.4% on Mar 28 and dipped a further 0.4% in the after-hours trade after President Trump expressed his dislike for the company’s business practices. As a result, the company has lost almost about $53 billion of its market value.
Per Reuters, Trump is worried about the future of “mom & pop retailers” as well as shopping malls since the online retail giant has taken a significant portion of their market share. Trump is also of the opinion that Amazon is causing damage to the small tax paying retailers.
Reportedly, Trump is trying to control the company by regulating its business practices through antitrust and competition laws. Further, he will also implement stringent tax treatment against Amazon.
This is not the first time the president has raised his voice against the company. Last year, Trump accused Amazon for not paying internet taxes and causing loss of jobs in many cities and towns of the United States. Also, the company was penalised for paying the postal services less for deliveries.
Trump also claimed that The Washington Post, which is owned by the CEO of Amazon, publishes fake news.
However, the company is performing well in spite of the president’s alleged charges. Last quarter, Amazon generated $60.45 billion of revenues, reflecting year-over-year growth of 38.2%.
Coming to the price performance, the shares of Amazon have returned 63.3% over a year, outperforming the industry’s rally of 49.7%.
Strengthening AWS & Winning Clients Continue to Benefit
Amazon Web Services (“AWS”), Amazon’s cloud service provider is gaining momentum with its growing clientele which will generate more revenues for the company. Moreover, it will boost the market share of the company.
The latest client, GoDaddy (GDDY - Free Report) , is a major win for Amazon and a significant addition to the client base of AWS. The deal will boost GoDaddy’s delivery of products and will enhance the deployment time of these products globally. Per the terms of the multiyear agreement, AWS will also sell some of the products of GoDaddy such as Managed WordPress and GoCentral.
AWS has other important clients like Adobe, Airbnb, Spotify, BMW, Air Asia, Rovio Entertainment and many more. Further, AWS witnessed the highest market share (62%) in the last quarter when compared with Microsoft’s (MSFT - Free Report) Azure (20%) and Alphabet’s (GOOGL - Free Report) Google Cloud (12%). AWS generated $17.5 billion revenues in 2017, which was up 43% on a year-over-year basis.
AWS has recently launched a new region in France and a second AWS Region in China during the quarter. The company plans to open 12 more Availability Zones (“AZ”) across four regions (Bahrain, Hong Kong, Sweden and a second GovCloud Region in the United States) by 2019.
Hence, we believe Amazon will continue to benefit from its cloud business with the emerging megatrend of cloud adoption across the world.
Amazon’s growing partnership has been significantly helping the company in shaping its growth trajectory. Moreover, its strong focus on diversification of business is helping it to sustain momentum.
Recently, the company partnered with a French retailer, Monoprix, which will help the company to strengthen its footprint in European grocery market, especially in France. Further, the successful acquisition of Whole Foods has accelerated Amazon’s grocery business.
Acquisition of Ring also helped the company to enter the home automation market.
In December 2017, Amazon expanded its cloud business in China by partnering with Ningxia Western Cloud Data Technology.
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Trump's Support for Brick & Mortar Stores Hits Amazon Stock
Shares of Amazon.com, Inc. (AMZN - Free Report) plunged 4.4% on Mar 28 and dipped a further 0.4% in the after-hours trade after President Trump expressed his dislike for the company’s business practices. As a result, the company has lost almost about $53 billion of its market value.
Per Reuters, Trump is worried about the future of “mom & pop retailers” as well as shopping malls since the online retail giant has taken a significant portion of their market share. Trump is also of the opinion that Amazon is causing damage to the small tax paying retailers.
Reportedly, Trump is trying to control the company by regulating its business practices through antitrust and competition laws. Further, he will also implement stringent tax treatment against Amazon.
This is not the first time the president has raised his voice against the company. Last year, Trump accused Amazon for not paying internet taxes and causing loss of jobs in many cities and towns of the United States. Also, the company was penalised for paying the postal services less for deliveries.
Trump also claimed that The Washington Post, which is owned by the CEO of Amazon, publishes fake news.
However, the company is performing well in spite of the president’s alleged charges. Last quarter, Amazon generated $60.45 billion of revenues, reflecting year-over-year growth of 38.2%.
Coming to the price performance, the shares of Amazon have returned 63.3% over a year, outperforming the industry’s rally of 49.7%.
Strengthening AWS & Winning Clients Continue to Benefit
Amazon Web Services (“AWS”), Amazon’s cloud service provider is gaining momentum with its growing clientele which will generate more revenues for the company. Moreover, it will boost the market share of the company.
The latest client, GoDaddy (GDDY - Free Report) , is a major win for Amazon and a significant addition to the client base of AWS. The deal will boost GoDaddy’s delivery of products and will enhance the deployment time of these products globally. Per the terms of the multiyear agreement, AWS will also sell some of the products of GoDaddy such as Managed WordPress and GoCentral.
AWS has other important clients like Adobe, Airbnb, Spotify, BMW, Air Asia, Rovio Entertainment and many more. Further, AWS witnessed the highest market share (62%) in the last quarter when compared with Microsoft’s (MSFT - Free Report) Azure (20%) and Alphabet’s (GOOGL - Free Report) Google Cloud (12%). AWS generated $17.5 billion revenues in 2017, which was up 43% on a year-over-year basis.
AWS has recently launched a new region in France and a second AWS Region in China during the quarter. The company plans to open 12 more Availability Zones (“AZ”) across four regions (Bahrain, Hong Kong, Sweden and a second GovCloud Region in the United States) by 2019.
Hence, we believe Amazon will continue to benefit from its cloud business with the emerging megatrend of cloud adoption across the world.
Amazon.com, Inc. Revenue (TTM)
Amazon.com, Inc. Revenue (TTM) | Amazon.com, Inc. Quote
Strategic Partnerships & Acquisitions – Key Catalyst
Amazon’s growing partnership has been significantly helping the company in shaping its growth trajectory. Moreover, its strong focus on diversification of business is helping it to sustain momentum.
Recently, the company partnered with a French retailer, Monoprix, which will help the company to strengthen its footprint in European grocery market, especially in France. Further, the successful acquisition of Whole Foods has accelerated Amazon’s grocery business.
Acquisition of Ring also helped the company to enter the home automation market.
In December 2017, Amazon expanded its cloud business in China by partnering with Ningxia Western Cloud Data Technology.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>