Joseph Grinkorn: The cloud services and entering China

New York, November27, 2014–I recommend Amazon “outperform” with an upside of 50% and a target price of 500$ per stock. The stock is very attractive now due to the new growing fields that Amazon started working in – the online trade market and the cloud services, so said Jospeh Grinkorn, an expert in social media and technology and CEO of Morris Group.

Grinkorn said that the company recently launched its AWS service (Amazon Web Services), which is increasingly growing and gathering new users. In the cloud industry, the first names that come up today are Microsoft, Google and IBM. In the same breath you need to understand that Amazon is a major player in the cloud services. Its AWS service is giving today cloud services at a low price for leading companies abroad and in the United States, like General Electric, Johnson & Johnson, the CIA, Netflix and other companies. Amazon nowadays controls a portion of 27% of the overall cloud services market, second after that is Microsoft with a portion of only 10%. The control over the cloud services comes to expression in the top line. In 2012 Amazon’s cloud services revenues stood at 1.9 billion dollars and in 2013 the company’s cloud services revenues stood at 3.1 billion dollars. 2014 is estimated to end with revenues of about 5 billion dollars, which will come from about 1 million users of Amazon’s cloud services. Amazon is not only the most dominant player in the field; it is also the player that showed the largest growth in the cloud industry out of all the technology companies today.

In the retail trade industry, we all know that Amazon is interested in selling us everything, starting with books to smartphones and even grocery products. Now Amazon has decided to do the same in the developing Chinese market. Amazon recently launched Amazon China, in celebration of the Chinese Singles Day. When you think of e-commerce in china, you think about the Chinese giants, Alibaba and JD.com, but Amazon decided to compete with them in their own playground.

Grinkorn said that the company already offers its Chinese customers a selection of over 80,000 products, a number that is rapidly increasing, and the Chinese public, which loves good American products, is willing to pay for them. Entering a market of 1.4 billion potential consumers cannot be a bad thing for a company like Amazon, which benefits from a large number of sales. The competition that Amazon sets for Alibaba and JD.com is in the customer service field and not necessarily the price. The company reaches its customers all over the world in as little of 3 business days, which creates a customer service experience that brings happy consumer’s, who are willing to pay slightly more to have their products delivered in 3 days instead of a month or more, as Chinese companies tend to do in today’s market, back to Amazon. To this day, Amazon holds a portion of only 1.6% of the online Chinese market. With the launch of its new site, Amazon is expected to double its sales in China in a short term, and reach a portion of 15% of the Chinese market in 2017.

 

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The Morris Group Companies specializes in equity investments for private and public social media and technology companies, high return real estate investments and commercial / residential financing.

More information can be found at: www.Morris-Group.co

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