Amazon Stock (AMZN Stock) Wins CES…Again
There were a lot of remarkable gadgets displayed at this year’s Consumer Electronics Shows (CES), but Amazon.com, Inc. (NASDAQ:AMZN) stole the show with “Alexa,” its artificial intelligence software. We believe this is the year Alexa could become a cash cow, and apparently the market does as well. Why else did Amazon stock (AMZN stock) surge five percent since the start of CES?
Just to be clear: Amazon wasn’t an official vendor at CES, yet it managed to suck up most of the oxygen in the room. This is because dozens of other manufacturers started loading Alexa onto their products, becoming the platform of choice at CES. (Source: “Amazon’s Alexa is everywhere at CES 2017,” The Verge, January 6, 2017.)
There’s a comprehensive list of Alexa-related devices over at The Verge. However, we just wanted to name a few of the applications that caught our eye:
Ford Motor Company (NYSE:F) is putting Alexa in its vehicles. That’s right, Amazon’s AI is coming directly into all “Ford Fusions” and “F-150s,” meaning that you’ll soon be able to ask your car to look things up on the internet.
Whirlpool Corporation (NYSE:WHR) is making its washers, dryers, and kitchen appliances Alexa-friendly. With these additions, you could potentially preheat your oven without leaving the sofa.
ADT Corp (NYSE:ADT) is putting Alexa into its “Pulse” security system. If you have an “Amazon Echo” or “Amazon Dot,” and you have the ADT Pulse system, you can just tell Alexa to lock your door for you.
These items are just the tip of the iceberg. There are dozens of other products being built on top of the Alexa platform, which goes to show that Amazon stock is primed for massive gains. Folks, this is the moment we’ve been waiting for: the “Internet of Things” (IoT) is finally here.
For several years, analysts have been impatient for the IoT market to reach its tipping point. We all knew it was a matter of time before Internet connectivity overflowed into the rest of our physical world, but no one knew how long it would take for the movement to reach critical mass.
That includes us. We were 100% correct in identifying AMZN stock as a leading contender in the IoT market. The Echo, Amazon’s voice-activated speaker that sits in the home, was an obvious entry point for IoT because other devices could be linked into it. Moreover, the Alexa platform was open to developers and we believed it could become a modern version of Apple Inc.’s (NASDAQ:AAPL) “App Store.”
However, there was no telling whether it would take six months or three years. But this past CES showed us that hardware manufacturers have been busy. The Alexa movement is happening more quickly than we imagined, and it’s now within reach of consumers.
As such, we believe that Amazon stock is on the verge of extraordinary gains. The fact that AMZN stock added $47.05 to its share price a week into 2017 shows that some investors have clued into these signals. That being said, there remains much more potential to the upside.