Sunday, March 29, 2009

Is the Barrons Cover the Kiss of Death for Jeff Bezos and Amazon (AMZN)?


Wow. Last night, just after midnight I wrote about Amazon (AMZN)--Amazon . Toast up 5000 percent since IPO (Chart).

Next thing I know, an article from Barron's pops into my reader--The World's Best Retailer. Ironic? Well, yeah.

Here is a note of caution. Jeff Bezos is on the cover of Barron's this week. Why is this important?

If you read my article, Amazon . Toast, all the way to the end you would have noticed that Jeff Bezos was named Time's person of the year in 1999. What happened next? The stock dropped from a split adjusted $113 a share, all the way down to $5.67. Yikes.

Is the Barron's cover the kiss of death for Jeff Bezos and Amazon?
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Jeff Bezos' Amazon.com is winning customers with competitive prices, wide selection, reliability -- and Kindle. It's winning shareholders, too.


The World's Best Retailer --Barron's

THIS MAY BE AN OPPORTUNE time to add shares of Amazon.com to your shopping cart and proceed to checkout.
Now, Amazon is taking that a step further by providing Web services, better known these days as "cloud computing." What is cloud computing? It is the outsourcing of information-technology and data-center operations to third parties, mostly by small- and medium-sized companies that choose not to spend their resources to deal with these tasks themselves. (The name cloud derives from the remote ether-like computer space where the outsourced operations take place.) Amazon, which has spent more than $2 billion on its systems in the last decade, has divided these services into several parts, including: Amazon Simple DB (databases), Amazon Elastic Compute Cloud (computing capacity) and Amazon Simple Storage (data storage).

Price believes these services could eventually generate hundreds of millions of dollars annually -- and investors are getting them for almost nothing.
The second kicker is Kindle, a digital-reading device. Its original version was generally well received, but its recently released 2.0 edition has become a hit with consumers. Wall Street analysts estimate the company has sold 350,000 of the devices, which got a plug from Oprah Winfrey last fall.
Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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