It’s also starting to haunt traditional advertisers, just like Google.
Last month, the CEO of the world’s biggest advertising firm, Sir Martin Sorrell, said Amazon is keeping him up at night. As Amazon pressure Google’s search business, there’s a battle brewing between the two. Those companies better connect brands to end users, which is increasingly cutting out the advertising middle man.
Amazon controls just 1.3% of the digital advertising market, compared with a combined 58% for Google and Facebook. But Amazon is a threat because it has everyone’s information already in its system by nature, knows their buying history and preferences, and can point them to a two-click check-out process, while promising free deliveries in two days.
Speaking of disruption…one of our columnists recently wrote about how Amazon and Vanguard are arguably the “biggest disrupters of our age.”
Amazon, which earns half of all dollars spent online, is the leading culprit in the Retail Apocalypse. In the first quarter of 2017, 14 retail chains have announced they’re seeking bankruptcy protection. Retail consultant Walter Loeb calculates nearly 3,600 U.S. retail outlets will close this year. Amazon may top Macy’s in apparel sales this year, is opening several experimental bricks-and-mortar stores, and is even selling groceries.
Yeah the juice in the conference call will come during the Q&A. Analysts will get to ask anything — let’s hope they question the growth pace of AWS, the forecast…
That said, we’ll be listening for anything you need to know. I hope he addresses the light forecast and how much Amazon will be spending on facilities and other infrastructure this quarter.
Basically, Amazon is trying to disrupt every industry. It started with books, moved to brick-and-mortar shopping. It started picking up fashion lines lately. Next, it’s heading into grocery.
There’s challenges to all of this, of course. But so far it has proven to be flexible enough to enter these new markets pretty seamlessly. And its presence has become a huge headache for all the markets it touches. Barnes & Noble is struggling, Borders went out of business. Department stores like Macy’s are worried. etc.
We’re less than a half-hour away from the conference call, which is the most deadly boring earnings call every quarter. Amazon puts its CFO on – Bezos never joins – and has him basically read the press release verbatim before taking questions that he does his best not to actually answer.
The current move in Amazon stock is actually exactly what options traders predicted, even though it is a smaller move than after previous Amazon earnings reports.
Amazon’s stock has been on a tear lately. Part of that is because its fundamentals have been strong. But it’s also because the company keeps investing in things (sort of like Google) that are designed to help the company farther out in the future over a longer term. A…