2020 Could See the End Of Amazon as We Know It: NYU Prof.

Discussion in 'Stocks' started by kmiklas, Jul 28, 2017.

  1. kmiklas

    kmiklas

    http://www.investopedia.com/news/2020-could-see-end-amazon-we-know-it-nyu-prof/

    2020 Could See the End Of Amazon as We Know It: NYU Prof. By Mrinalini Krishna | July 25, 2017 — 6:00 AM EDT
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    That seems like an unlikely prediction of gloom for a company that is on a mission to be the marketplace for everything and is soaring on the back of its technology and logistical might. Yet New York University Professor and founder of L2, Scott Galloway believes that even though Amazon will be the first to cross the trillion dollar market cap milestone, it is also likely to be broken up.

    The Case For Breaking Up Amazon
    “By 2020 Amazon will be our first trillion dollar market cap company but don’t begin celebrating yet, as soon after a district attorney will realize that the fastest blue line path to the Governor’s mansion will be to go after Amazon and break them up as we begin to connect the dots and realize this amazing is destroying jobs faster than we can recreate them,” Galloway said.

    That fear was echoed in the immediate aftermath of the Amazon-Whole Foods deal when the company had to rush to clarify that it is has no current plans to automate cashier jobs, according to CNBC. But the fact the Amazon has already tested Amazon Go, a store with minimal human curation, in Seattle shows those worries are hardly illegitimate.


    Bloomberg reported that as of March Amazon employs 351,000 people, up 43 percent compared to last year. Jeff Bezos announced the creation of 100,000 jobs in January.



    Perspective On Growth and Potential
    That aside, Galloway’s analysis points out exactly the kind of behemoth Amazon has become and the potential it still has to grow.

    Market Cap: In just five years, Amazon's market cap has increased more than 360% from close to $107 billion in July 2012 to within striking distance of half a trillion dollars now. Keeping that history and its aggressive expansion through acquisitions in mind, Amazon's market cap doubling to over a trillion dollars in the next three years doesn't seem entirely implausible. (See also: Amazon Hits All-Time High as Analyst Predicts $1 Trillion Market Cap.)


    Read more: 2020 Could See the End Of Amazon as We Know It: NYU Prof. | Investopedia http://www.investopedia.com/news/2020-could-see-end-amazon-we-know-it-nyu-prof/#ixzz4o9YEVqBw
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  2. motif

    motif

    How will we survive without Amazon?
     
  3. algofy

    algofy

    agree.
     
  4. Baby Zons....like Baby Bells
     
  5. motif

    motif

    Amazon is not going anywhere. After Bezos received a 600 million dollar check from the CIA, you can guarantee there will be no ant-trust coming.
     
  6. After all where else can you get 2 day delivery on spy cameras?
     
    motif likes this.
  7. They'll just break it up into smaller companies. T, VZ, CTL and some others all used to be Bell. There's no reason they couldn't do that with AMZN.
     
    kmiklas likes this.
  8. neke

    neke

    Amazon is NOT doubling in the next three years. Its already in a huge bubble right now. Nothing grows for ever. Barrier to competitive entry isn't that high, and margins are razor-thin. It will take a long time for earnings to grow enough to match the current valuation.
    (Of course you could argue I would have said that 3 years ago :) )
     
    Clubber Lang likes this.
  9. Overnight

    Overnight

    You better check what you just typed..."Amazon is NOT doubling in the next three years.".

    That is a haughty claim. Get ready to eat crow.
     
  10. Cuddles

    Cuddles

    keeping an eye on walmart. I think they have the strongest online catalog behind amazon and alibaba
     
    #10     Jul 28, 2017