This Could Be Big for AMZN Stock
Jeff Bezos of Amazon.com, Inc. (NASDAQ:AMZN) never runs out of great ideas. Holders of AMZN stock must take note of his new plan that is about to revolutionize the technology space.
Bezos neither invented the technology, nor pioneered its use. However, the Amazon CEO has certainly redefined its utility for the world.
Bezos plans to invade our homes through Amazon’s “Internet of Things” (IoT) ecosystem. Allow me to explain what Amazon’s grand scheme is and how it will work.
The concept is simple. The “Internet of Things” (IoT) is like a parallel universe of machines. It’s an ecosystem where machines communicate and connect with each other, just like humans, except that this machine-to-machine communication takes place through wireless Internet connectivity.
Let me give you an example…
Take your house to be an IoT space in which your smartphone, home security alarm, kitchen appliances, lights, heating/cooling system, and entertainment gadgets are interconnected. Now, sitting in your living room, you’re able to control each of these machines with voice command—by “control,” not only do I mean turning them on and off, but also controlling their advanced settings, like temperature or TV channel. How cool is that?
Amazon calls this IoT-connected home a “smart home” and is creating a complete lineup of products to further its hold over the industry.
Amazon has already made this seemingly science fiction concept a reality with “Amazon Echo”—a device that uses Amazon’s artificial assistant, “Alexa,” and performs many IoT tasks for its owner. But Amazon is not stopping there.
The company has just added two new products to its IoT arsenal—“Amazon Tap” and “Amazon Dot.” Both of these are also powered by Alexa and mark another big step by Amazon in the IoT industry. (Source: “Amazon adds two new Alexa-powered devices, the Tap and Dot,” Mashable, March 7, 2016.)
Wait, that’s not all!
Amazon is not only aiming to connect these small household gadgets, but it’s also planning to connect bigger machines to your “smart home.” That includes your car. Yes, your car parked in the garage will also be responding to your voice commands. (Source: “Ford, Amazon working to connect cars to smart homes,” CNET, January 5, 2016.)
And again, the story doesn’t end there…
In fact, Amazon is building a complete IoT infrastructure. Supplementing these product launches is Amazon’s software platform that runs the backend and takes care of connectivity, safety, security, and storage of information in the IoT space.
I’m talking about “Amazon Web Services” (AWS)—Amazon’s cloud computing platform that launched IoT compatibility five months ago. (Source: “Amazon Web Services Announces AWS IoT,” Amazon.com, Inc., October 8, 2015; http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2095590.)
All in all, Amazon is geared up to be the biggest mover and shaker in the IoT industry, which is projected to become a trillion-dollar industry by 2020.
The Bottom Line on AMZN Stock
One calculated move after another, Bezos has managed to take his company from a small online book retailer to an e-commerce giant and ultimately a technology behemoth.
I could give you at least two dozen reasons why I love the company, but this new bet in the IoT space is hands-down the most exciting reason to be bullish on AMZN stock.
From where I see it, Amazon is slowly becoming invincible!