Why Schwab’s CEO Bets You Won’t Be Trading Stocks on Amazon

Discussion in 'Wall St. News' started by ajacobson, Apr 25, 2018.

  1. Last time I checked Amazon entered the cloud storage and computing business and beat everyone to death, other than Microsoft. Even Google is a nobody in comparison to Amazon. The cloud and storage business is highly regulated. Not as regulated as finance but regulated. You seem to have an issue with Bezos rather than expressing an opinion that is backed by logical and reasonable arguments.

     
    #11     Apr 25, 2018
  2. Or are you trying to convince me that it will rather be banks than Amazon that will offer full blockchain backed instant settlement and asset transfers. By the way what the respectable groupies on Wall Street called STP is in fact a farce. Still need 2 days to settle a simple cash fx transaction. 1 full day for a stock transfer. Good luck putting your hope on banks and financial players..

     
    #12     Apr 25, 2018
  3. Sig

    Sig

    Not sure you read to the end of the post, the part where I said "I'm a big fan of Amazon"?

    Would love to see the regulation around cloud storage? Any laws you can cite? Seriously, that's got to be one of the least regulated industries out there, mostly because regulation hasn't caught up to it and there certainly was zero regulation when Amazon started.
    Speaking of which, you do know why Amazon is a leader in that space right? You understand that Amazon built AWS to run their own infrastructure, and realized that they could monetize it on it's own. It was already built, they simply opened it up to outside users. From a business strategy standpoint, that couldn't be more different from entering an entirely new business in what happens to be one of the most regulated industries in the world. This was actually an HBS case study if I remember correctly, so it's relatively famous in strategy circles.
     
    #13     Apr 25, 2018
  4. Sig

    Sig

    I agree with you on the ridiculous state of funds transfers. I always think it's funny in a movie when the thief drains a bank account and the money instantaneously fills up his Swiss bank account, more like wait a few hours or days, call a couple times, get called a couple times, and then you might see your stolen $100M! That said, Amazon isn't the white knight to ride into that void, it will be one of a bunch of fintech companies that are doing cool stuff in that space at the moment. It will be an Uber of the financial world, just wade in and do it, get enough people on board that there's a groundswell of support when regulators try to enforce the status quo. You don't risk all of Amazon with that kind of strategy because even if successful it might sacrifice the ground-breaker to achieve that success. It's a startup play.
     
    #14     Apr 25, 2018
  5. newwurldmn

    newwurldmn

    To your point, Amazon pulled out of the prescription drug business....
    http://money.cnn.com/2018/04/16/news/companies/amazon-pharmacy-report/index.html
     
    #15     Apr 25, 2018
  6. tiddlywinks

    tiddlywinks

    Perfect!! :)
     
    #16     Apr 25, 2018
  7. Privacy laws and data protection laws ring any bells? Maybe not in your corner of the world but in the rest of the world cloud providers are pretty stringently regulated and watched. But then in some parts of the world kids can buy a gun before they can buy a beer.

     
    #17     Apr 25, 2018
  8. And how does the way Amazon monetized its cloud business relate to your initial claim Amazon as non tech firm has no chance to enter the investment management industry? I am still confused

    PS and why are you constantly in every post of yours including your academic credentials or at least suggestions thereof? Does not make your points particularly more credible.

     
    #18     Apr 25, 2018
  9. So you realize that Uber is completely dead outside the US? I don't follow your examples including this one. Amazon was built from scratch. Bezos is perhaps the only one who steadfastly believed and continued on into the face of everyone who claimed to know an online bookseller can never succeed. Almost everything he touched turned to gold. A very rare breed even among the world's 1000 most successful companies.

    Listen, my only point was that if anyone can shake this drunken village called Wallstreet then it is Bezos. And it's perfectly apparent how the shit players in this industry are peeing their pants right now. That CEO sounded pathetic.

     
    #19     Apr 25, 2018
  10. Sig

    Sig

    Uber went into a highly regulated world with a bunch of outdated regulations on common carriage. They essentially broke the rules most places they went, not getting the right licenses from the right utilities commissions to comply with the laws that they would have to comply with if they were a taxi service. They knowingly did this, with the idea that people would love the service, and by the time the utility commission (usually the one's who regulate taxis, oddly) started to take action on them there would be a backlash from all their users and they'd either change the law or rule or interpret it in a manner favorable to Uber. This is a dangerous strategy, and often time it kills the first mover but opens up the industry to follow. You don't bet a huge successful company on this type of strategy, you do it with a new startup. If Uber indeed dies that would further reinforce my point.
    This has nothing to do with "they all said he couldn't do it and he did" kind of thinking, with that logic Bezos can easily cure cancer and solve world peace. That's exactly the "Bezos riding in on a unicorn and waving his magic wand" thinking I'm referring to! It's just a stupid strategy move for Amazon and Bezos, that's all.
     
    Last edited: Apr 25, 2018
    #20     Apr 25, 2018