Amazon Web Services (AWS) offers an intuitively easy User Interface, flexibility, affordability along with more features. But this isn’t enough to prevent its customer to use the competitor Microsoft Azure (or even Google Cloud) as a secondary cloud provider (as backup). This circumstance allows customers to migrate completely to AWS rivals.
Amazon is busy building economies of scope as a competitive advantage like its acquisition of Medical One, a telecare company, instead of creating or strengthening its cloud ecosystem.
In the long run, we believe the market share of AWS could be slightly eroded gradually by more intense competition due to a lack of switching costs. We think Amazon should take care of this issue seriously, especially when the cloud is its most prolific segment.
Analysis of Netflix Stock is focused on answering this question: It loses 200 million subscribers in the first quarter of 2022. The streaming giant plan to launch an ad-supported program to cut the expense and offer lower subscription fees for the customer. Will this decision help company to regain or at least retain its customer?
If we inspect carefully the number of subscribers lost, actually Netflix is just fine. The streaming giant only lost 200 thousand subscribers from a total of 221 million. It is a tiny fraction, less than 0.1%. It is no big deal. Netflix said that number comes from 700 thousand losses due to Russian things. If we neglect Russia – Ukraine number, Netflix has an additional 500 thousand subscribers. Not bad. Far from it. Case closed. So, why we are here? To address a more important issue: Netflix’s Competitive Advantage.
In the last sequel of the Tesla episode, we know that Tesla has an impenetrable economic moat and promising earning power. But, with a sky-high valuation, is it worth buying? Our stock analysis of Tesla tries to shed the light.
Here is the transcript (edited – smoothed – filtered) version of the discussion about Tesla revenue analysis in our small-hidden group. As usual, our answer always tries to give insight beyond the number that is written in the financial report.
Many resources – whether it is Reddit thread, YouTube video, or blog – often quoted what Warren Buffett says and what he writes. Unfortunately, only a few (including us) give a deep analysis of Oracle’s portfolio. We believe, looking carefully at his portfolio, investors could understand more about Warren Buffett Investing Strategy.
The best timing to buy Amazon stock is when Jeff Bezos works in his garage(1). We are going to evaluate this investing strategy by answering the question of when to buy and sell. In that process, we incorporate the business life cycle as a guide.
Amazon is out of big ten largest market cap global 2014