Amazon now has more than 300 million active users, a market cap bigger than its next four largest US peers combined (Home Depot, Priceline, Netflix and Lowe’s) and one of the most valuable brand names in the world.
No longer just an online bookstore – or even ‘the everything store’ – today Amazon is a marketplace for third party and private label products, a manufacturer of electronic devices and producer of media content. It also offers streaming and free shipping through Amazon Prime and a leading cloud computing service through Amazon Web Services.
Its share of retail spending is also increasing; in the past two years, one in every two dollars spent in retail was through Amazon. One in four people now check Amazon’s user reviews while in a physical store.
The company’s unparalleled investment in last-mile infrastructure has left its competitors behind and has given rise to free next-day delivery for Amazon Prime members in just one click. And for those who think that one click is one click too many, the Amazon Echo will add items to your shopping cart if you simply ask Alexa.
Currently, 52% of US households have an Amazon Prime account, while only 49% have a landline. Things are changing and Amazon is leading the charge.
In a world where digital companies like Amazon are causing huge disruption to every business sector, Cazenove Capital’s tried and tested stock picking methodology allows us to identify the companies that are likely to weather the digital storm and emerge even stronger.