Amazon’s stock price has rocketed by 50% in the past year, delighting shareholders and making founder Jeff Bezos the second richest man in the world.
The company could be worth $US910 billion in 10 years time, according to Barclays analyst Ross Sandler, and eventually become a
$US1 trillion dollar company.
Sandler and his Barclays team set out 10 key points behind their prediction on Amazon’s valuation over the next decade. They are as follows:
1) Amazon Web Services will explode into a massive global enterprise with tens of millions of paying customers and $US76 billion in annual revenue.
2) Amazon Prime will have 450 million members. Currently there are about 100 million.
3) Amazon’s retail operations will penetrate deep into South East Asian and South American markets, and deliver revenues of around $US520 billion.
4) Amazon will offer a plethora of new product categories as the store comes closer and closer to really being “The Everything Store.”
5) There will be more Prime services.
7) It will offer TV subscriptions through Prime Video. More and more people are “cutting the cord,” and Amazon wants to be there to fill the void.
8) It will take on Google and Facebook in online advertising, using advertising on and off Amazon to keep consumers on Amazon or to get them back.
9) There will be new Echo hardware powered by Alexa to better adapt to the expansion of Alexa.
10) Alexa will expand into your home, your car, and your work place.
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