Is this an Amazon killer?

Gold is still below $1300, trading at $1,295,40. Up today +0,37%. Silver jumps +0,73% to $19,58. Crude Oil (brent) is down today -0,43% to $109,86, together with Copper which is down -0,21% to $308,15.

Nikkei was in a green territory today, trading at 14,429. Up +0,17%, also European markets are trading lower today. Investors hate war and some are worried as the Ukraine crisis deepens. The Euro Zone`s blue-chip Euro STOXX 50 index slid -0,5% while the DAX is down -1,12%.


Amazon (AMZN) will open in a red territory today. About -2%. Amazon reported Q1 EPS of $0,23 (like forecast). Revenue for the quarter came in at $19,74 billion. That`s above consensus of $19,42 billion.

Amazon said in a report yesterday that Q2 2014 revenue will drop down to about $18,1 – 19,8 billion versus consensus of $19,03 billion. “We get our energy from inventing on behalf of customers, and 2014 is off to a kinetic start,” said founder and CEO, Jeff Bezos.

The delivery cost has been rising since 2009 and Amazon want to take more control over their increasing cost. With Amazon Fresh, they will deliver the goods direct to the customers and also control their customers shopping experience.

Millions of Amazon customers don`t know this and Amazon is growing at a faster speed than UPS and FedEx who are responsible for shipping the majority of Amazon`s packages. Last mile, as they call it, will revolutionize how shipments are delivered to millions of customers, they said.

Amazon will start to deliver on Sundays in the U.K. This is a smart move I think, because it lowers the cost and make it difficult for their customers in the same market. Like Alibaba who is planning to go public in a very short period of time.

Based on gross trading volume, Alibaba actually outsells Amazon and Ebay combined! They are more than just an e-commerce company. In addition, they now have a banking system without government intervention.

Many will be surprised to hear that this China-born innovator holds around 50% of China`s mobile and online payments market. Alibaba`s payment system is called Alipay and syncs directly with its B2C and C2C commerce sites, Taobao and Tmall. This is impressive.

Last year they entered the banking industry, but how is that possible without China`s government, a communist state that controls loans, interest rates, and all the banking system? It will be a great battle out there when Alibaba enters the U.S market.

Amazon is doing something right with their logistics and service I think, and what customers are looking for is low price and great service, delivered fast. Oops! Did I say low price? That is deflation and we don`t want that, do we?

Reports today:
09:55 a.m EST Revised UoM Consumer Sentiment

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Commodities, Stock market, Stocks

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.