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A Few Reasons Why Amazon Can Continue Growing
Posted by: Vinay Singh (IP Logged)
Date: June 23, 2014 05:29PM
Once referred to as the world's largest online bookstore, Amazon.com (AMZN) is that and so much more today. As the company has added more products and services to its overall mix, its customers, merchants, and shareholders have all benefited -- and it looks like this may continue to be the case moving forward.
Continuing to expand
Recently, Amazon reported very solid first quarter. These were due in part to gaining more control over the company's shipping expenses and other costs. Decreased shipping costs came from Amazon's building of more distribution warehouses that are closer to the company's worldwide customers. Amazon also began to charge its third-party merchants on its marketplace a higher amount for their shipping services as well.
Although still riding strong, Amazon's international revenue growth did slow down a bit early this year, possibly prompting some declines in the firm's operating profit and likewise its net income as compared to the first quarter last year.
Netflix has also opted to become a competitor in the set-top device arena, turning to Microsoftto put out the first "Roku" like app that allows Xbox gamers to stream the Netflix service via their console. Unfortunately, Netflix found out the hard way from the Qwikster disaster that the true way to get into the living rooms of its customers is to make receiving online video more convenient -- not complicated!
Although the shares of Amazon are currently trading near their all-time high, the stock clearly has much more potential for upward movement in the future. While the company does not presently offer a dividend to its shareholders, an expected rise in share price would be great for stockholders of Amazon.
Stocks Discussed: AMZN,
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