Boston, MA 05/06/2014 (wallstreetpr) – Jeff Bezos has always dreamed big and his company Amazon.com, Inc. (NASDAQ:AMZN) continues to venture into newer territories and disrupt more businesses after revolutionizing the e-retail space.
With its Kindle e-books reader, Amazon is already in the content business and now wants to deliver more content to consumers. With changing audience tastes whereby people want to have the freedom to see their favorite shows whenever and wherever they want to, online streaming is a vast growth industry with Netflix, Inc. (NASDAQ:NFLX) being the dominant player as of now.
But Amazon.com, Inc. (NASDAQ:AMZN) has been known to be a ruthless competitor and with the launch of its new Fire TV hardware, Amazon has made its intention clear in the video streaming space. Just as Netflix has enjoyed huge success with House of Cards and Orange is the New Black persuading Yahoo! Inc. (NASDAQ:YHOO) to dip its toes in the business of producing original content, Amazon too wants to test the creative waters by giving the green light to two new original shows: The Cosmopolitans and The Hand of God.
To offer a rich collection of choices and content to its Amazon Prime subscribers, Amazon also announced a deal recently with HBO, a part of Time Warner Inc (NYSE:TWX) to stream old hit shows such as The Sopranos and The Wire as well as to stream older seasons of shows like Boardwalk Empire and Girls.
Amazon and Twitter Deal
If it’s too cumbersome for some buyers to visit the Amazon website to make a purchase, not to worry! Twitter has signed a deal with Amazon whereby users can shop directly from inside Twitter by replying to a tweet that has a product link with the hashtag #AmazonCart. This will add the items to a user’s shopping cart and the users will need to visit the Amazon website to complete the transaction. This nevertheless facilitates impulse buying and is a win-win for both the companies.
Will Amazon Make Phones and Server Chips?
With Amazon, it’s difficult to predict the next steps. While rumors are flying about Amazon getting into chip design for its own server chips, there are other rumors that it might get into the phone business or the tablet business.
Declining Stock Prices
Despite posting 1Q2014 revenues of $19.74 billion — translating to a growth of 23% compared to 1Q2013 — Amazon.com, Inc. (NASDAQ:AMZN)’s stock has declined by over 22.0% since the beginning of the year. This decline seems to be reflected in other tech stocks including Twitter Inc (NYSE:TWTR) and LinkedIn Corp (NYSE:LNKD).