Online retailers have benefited continually from the growth of ecommerce and Amazon (AMZN, Financial) is no exception to this trend.
In reality, nearly one out of every three online product searches is done through Amazon, as the company is aggressively focusing on expanding its product collection. Moreover, the company has also strategized to enhance its shipping services and have an improved delivery system.
The company was off to a bad start this year, but over the last few months, it has outperformed the ecommerce market. Moving onward, the company is planning to inaugurate convenience stores as well as curbside pickup locations all over the U.S. to speed up the growth of its grocery business.
It looks like a great step as the company gained six years of experience before expanding fresh grocery delivery service. And now Amazon is preparing to seize a massive share of the U.S. grocery market that is worth $600 billion.
On the other hand Amazon recently publicized that it has partnered with VMware (VMW, Financial) to bring VMware’s cloud services to its Amazon Web Services (AMS). This partnership will permit Amazon to bring VMware’s cloud infrastructure software to its public cloud service, building a hybrid cloud that permits consumers to use both their hardware-based data center as well as AWS simultaneously.
On top of this, one of the company's most significant advantages is that it can possibly boost its corporate consumer reach by offering customers the public cloud they require without those companies to relinquish their in-house data centers
Apart from this, Amazon has also introduced its new service known as Amazon Music Unlimited, which is available for just $8 a month and has several other offerings with a price variation. Other players are still trying to break the $10 per month barrier, but now Amazon has gained a clear lead over them.
The company is expected to offer on-demand streaming as an enticement to sign up for its Prime service. Not only will it appeal to more users, but it will also force other existing users to renew their subscriptions.
Summing up
Despite Amazon’s massive size, the company appears to have enough growth opportunities to continue moving higher. Although the stock is already hovering near all-time highs, it can easily move higher and move toward the $1,000 mark.
Disclosure: No position in any of the stocks.
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