The stock price of the Amazon shopping mall system more than doubled in 2015. Its market capitalizations reached $325 billion. Looks like as long as Jeff Bezon (Amazon CEO) remains in his position, the stock price will keep raising.
Jeff Bezos seem to act as many other corporation CEOs—looks like his goal is to beat Wall Street expectations for quarterly earnings per share and boost its forecast for the next year.
The CEO obsession with Wall Street’s quarterly control is transformed into compensation packages: many CEOs buy back shares so the company will reduce the number of shares outstanding and thereby boost EPS above the target level needed to win a big bonus.
2015 showed a record levels of mergers that are over $5 trillion worth. This happened after years of record profits and $1.43 trillion in cash.
The company have to search for more growth opportunities. Jeff Bezos seems to be obsessed by the pursuit of growth. Amazon is still growing at over 20% despite reaching $100 billion in revenue.
Check 3 reasons the Amazon multi vendor shopping center will keep going up:
- Jeff Bezos started the Amazon virtual mall website in 1994 as a startup and still runs it as a startup. And investors shouldn’t be surprised that there’s something special about Bezos. He’s still inventing channels and new ways to grow the company. Almost all the ideas of Jeff Bezos work: AWS, AmazonPrime—these brought millions of dollars of income. Bezos’ salary is $84,000 a year but his stock has made up for that.
- The share of Amazon’s market keeps growing. The huge ecommerce market at which the Amazon multi vendor mall is targeted is growing faster than its competitors. Macquarie Research reports that Amazon snagged 51% of every additional $1 Americans spent online in 2015. Moreover, it gobbled up 23.4% of American’s $94 billion in on and off-line retail spending this year.
- Amazon has a reliable strategy to attract and retain customers. The Amazon virtual marketplace is aiming to bring the best service, the widest range of products, and the lowest prices to its customers. And that’s it about the Amazon strategy. These words are easy to say but hard to make real for each of the millions of customers. To achieve its goals the Amazon multi vendor shopping center built more warehouses across the country to speed up the delivery. Some analysts believe that by the end of 2020 Amazon Prime members will rise from 25% to 50% of all American households.