Tag: amazon

How much a day cost Amazon CEO?

You are worried about your failures and losses? You must be, despite the fact whats the cost of your failure? How much you did loss? Nothing to worry about because your total value is just 0.0001 % of the loss of Amazon in one day. That’s ridiculous and painful.

Plunging global markets lopped $US99 billion ($140 billion)  from the fortunes of the world’s 500 wealthiest people, the year’s second-steepest one-day drop for the Bloomberg Billionaires Index


Amazon.Com Inc. founder Jeff Bezos lost $US9.1 billion ($12.9 billion), the most of anyone on the index, as shares of the online retailer fell the most in more than two years. The plunge lowered Bezos’s net worth to $US145.2 billion, its lowest since July.

It was part of a horrific plunge on the Nasdaq index, which suffered its worst day in two years, the index finishing over 4 per cent lower.

Apple gave up 4.6 per cent to $US216.36 and Microsoft dropped 5.4 per cent to $US106.16. Amazon skidded 6.2 per cent to $US1,755.25 and Alphabet, Google’s parent company, gave up 4.6 per cent to $US1,092.16.

Amazon has soared 50 per cent this year but has fallen 14 per cent from its all-time high in early September.


Online store stock value touched $1 trillion and now close to Apple

Amazon is now not only synonymous with online shopping, but is also opening physical stores, owns the Whole Foods grocery franchise and runs a massively lucrative cloud-services business

Most advance warehouse in the World , Amazon takes the lead claiming advance warehouse in UK

According to a recent NPR/Marist poll, 92 percent of America’s online shoppers have bought something on Amazon. More than 40 percent said they buy something on Amazon once a month or more often. In fact, when people shop online, they’re most likely to start on Amazon, the poll found.

Amazon has said that more than 100 million people around the world pay for its Prime subscription.

By early afternoon on Tuesday, Amazon’s stock was trading at $2,030 per share, up less than 1 percent, putting its market cap at $990 billion

Amazon’s stock value briefly topped $1 trillion on Tuesday, a little over a month after Apple crossed the same milestone.

The tech and retail behemoth, founded as an online bookstore by CEO Jeff Bezos in 1994, has been consistently profitable only since 2015. In fact, Amazon profits have averaged $2 billion in each of the first two quarters of this year.

China steering close to US in World’s listing of Top tech giants in 2018

The world’s 20 largest tech companies now exclusively

IT industry is overall progressed drastically in regards of innovation and technology in last five years. More than 1.5 millions entrepreneurs globally have registered themselves and have shown keen interest in adding value in the industry. However it has been observed that Silicon valley has declining trend of inviting overseas in IT firms in last few months explicitly from Asia the low economic region, reason of such trend is cost cut.

On the other hand Large companies can be located all over the globe.

For example, massive auto companies can be found practically anywhere on a map. Ford (USA), Toyota (Japan), Volkswagen (Germany), Hyundai (South Korea), Volvo (Sweden), Tata Motors (India), and Magna (Canada) are just some of the biggest companies involved in the production of vehicles or parts.

While the banking, pharma, energy, and retail industries also have geographic spread as well, the same cannot be said for the rapidly-growing tech industry.

Image: Visual Capitalist

The clash of tech titans

The most recent edition of Mary Meeker’s famous Internet Trends 2018 report highlighted the top internet companies in the world by valuation, with an interesting and perhaps unintended outcome.

Of the 20 largest tech giants globally, a total of zero are located outside of the United States and China.

Here are the latest rankings of internet companies, using updated market caps for all public companies:

*In Meeker’s chart, she kept eBay-Paypal together as one entity. We’ve separated them based on the 2015 spinoff.

**Xiaomi’s valuation has been in question ahead of its July 9 IPO in Hong Kong, and we’ve used the most recent valuation estimate of $54 billion here.

In total, the above list of companies is worth $5.9 trillion, with a 75%-25% split in terms of USA/China.

It’s also worth noting that the list excludes Samsung, likely because the South Korean company is quite diversified in its manufacturing activities (TVs, refrigerators, air conditioners, batteries, microwave ovens, etc.).

A steep dropoff

Aside from the USA-China duality, the other major noticeable aspect of the list of the world’s largest tech giants is that it clearly shows a divide between top-tier companies and those further down the ladder. In fact, there is not a single company with a valuation between $200 billion and $450 billion.

The top seven companies on the list account for 81% of the total value of the list, and they are all above the $450B mark. These include behemoths like Apple, Alphabet, Amazon and Microsoft, but also two big Chinese companies as well (Tencent, Alibaba).

Meanwhile, the bottom 14 companies muster up just 19% of the value – a fact that underlines how hard it is to vault a tech company into the upper echelon of the market.

How the most trusted and influential US company can Gobble Assets Management?


If you buy physical and digital products from Amazon, would you consider buying financial products as well?

70% of U.S. households trust Amazon enough to be Prime members (Consumer Intelligence Research Partners, 2017). In all probability, an even greater portion of households owning mutual funds are Prime members. I believe most of these customers would at least investigate the possibility of becoming an Amazon asset management client. It’s also likely that some non-trivial portion of this group would go on to become clients. Jeff Bezos’ disdain for Wall Street is well known, so it’s surprising that he doesn’t appear to have set his sights on asset management. If Amazon could decimate bricks and mortar retailers, what might happen to the asset management industry, where 35% operating margins are the norm?

Related image

How Amazon Can Gobble Assets

In addition to its home page, Amazon is rich with the most important resource in asset management: trust. The firm earned the highest reputation ranking in the U.S. in a 2017 Harris Poll. It was ranked as both the most influential and most trusted company in a 2016 survey by SurveyMonkey. It was the only company to land in the top 5 for both categories. Unlike a surprising number of tech companies, Amazon has paid attention to web security. When you’re handling other people’s money, competently allocating resources for security is critical. There are some asset managers and fund administrators I wouldn’t do business with because of observed technology or culture gaps with regard to security. The public’s familiarity with and trust in Amazon raises its brand to a privileged place in business.

That doesn’t automatically translate to easy monetization in asset management. But Chinese tech companies show how easy it could be. Take a look at Alibaba, which is a Chinese incarnation of Amazon + eBay + Paypal + Mastercard + UPS +… Fidelity. In just 4 years, it has come to manage the world’s largest money market fund, according to the Wall Street Journal. The asset management world watched in awe and horror as the fund amassed $92 billion in its first year alone, becoming the world’s 4th largest money market fund in 2014. At first conceived as a holding place for excess funds held by Alibaba customers at Alipay (similar to Paypal), the fund exploded in popularity by combining an incongruously high yield with NAV principal stability.

Alibaba has expanded its product line to include funds managed by other asset managers. It is possible that Alibaba eventually houses the world’s largest asset manager. Tencent, another Chinese internet behemoth, has also entered the asset management domain. Could Amazon embark on a similar venture?

Thought Experiment on the Amazon Fund Platform

Imagine that you go to the Amazon homepage. You click on a link labeled “Funds”, which is next to the “Prime” link. You are now on a fund products page, featuring a mix of Amazon branded and 3rd party funds. Just as you can buy an Amazon private label sweater for $7 or a branded sweater for $75, you can now buy a large cap U.S. equity index ETF from Amazon with zero management fees or the Vanguard equivalent with 0.04% in management fees.

Trading in either ETF would occur with zero transaction cost for non-professional traders. Since placement on the Amazon platform is so valuable, external fund managers pay Amazon a fee, allowing Amazon to charge no transaction cost. Presentation of fund performance, performance attribution, and risk decomposition are standardized, colorful, and informative. It is superior to similar presentations by industry incumbents because Amazon specializes in presenting information clearly and quickly. At the first layer of detail, the information suits average retail investors. At the second and third level of detail, quant PhDs are satisfied.

Just as Amazon doesn’t care which sweater you buy as long as it’s ordered through them, the company is indifferent to the debates between active vs. passive, open end fund vs. ETF, 60/40 vs. 130/30, domestic vs. international.

If you want to buy it, Amazon will sell it. Do you like Southeast Asian casinos with artificial intelligence croupiers? You can find a niche ETF that holds that group of companies in either market cap weighted or equal weighted form. Amazon might even offer its own private label ETFs on simple indices (constructed by Amazon itself to save on fees it would otherwise have to pay to index providers). It might also offer private label risk factor strategies and unabashed active strategies, which will probably do no better, but no worse, than their peer groups.

What we do know is that Amazon’s active strategies will be cheaper. The website offers funds that have both weak and strong historical performance because Amazon knows that historical performance is no indication of future returns. Amazon will offer it all, but provide adequate quantitative and qualitative disclosure so that end investors can decide. You choose to sweep cash into the Amazon short term investment vehicle, which doesn’t guarantee NAV stays at $1, but tries hard to. Maybe Amazon uses funds from this account for corporate purposes, driving its negative net working capital into more negative territory. Account holders benefit from a slightly higher yield than they might otherwise get (due to Amazon’s low investment grade debt rating), and Amazon has a cheap funding source.

Portfolio Management

Perhaps Amazon identifies you as a top 0.01% trader in terms of hit rate, profitability, and drawdowns for 5 years running, across every 12 month period. Amazon’s analytics determine that you are achieving these results with statistical robustness, devoid of risk factor exposures that make strategies unscalable (small cap, illiquidity risk); therefore, you’re offered a chance to run your own fund with infrastructure, compliance, and reporting handled by Amazon at no fixed cost and 10% of whatever management fee you propose.

Amazon assists you with marketing on the website and seeds you with $10mm. The only condition is that you hold all personal liquid investments at Amazon (for compliance oversight), and Amazon itself custodies the assets. Soon Amazon has a virtual stable of in-house portfolio managers, all over the world, managing trillions of dollars, at minimal cost to end investors. Marginal distribution costs are zero and almost all compensation goes to the portfolio manager. Due to the law of large numbers and the culling of its entire user base, Amazon’s active managers are in the top decile of all active managers in all active management categories.

Maybe you’re a deeply knowledgeable and conservative investor, preferring funds from established asset managers. You like a specialist emerging market active manager whose fund you’ve owned for 10 years but suspect you don’t understand how to fairly analyze their relative performance vs. other active managers or vs. passive or risk factor ETFs. Amazon has a tool that analyzes the fund’s SEC filings, and derives the most efficient combination of index and risk factor ETFs to replicate the active fund’s performance. You also see costs compared to its proxied combination of passive or smart beta or risk factor exposures. Amazon’s technology delivery and process optimization caters to clients of varying degrees of sophistication.

Investment Advice

Amazon recommends Huckleberry Finn because you ordered Tom Sawyer last week. When you go to the Funds page, you get a recommendation to look at a combination of 3 ETFs that mimics (at 1/10th the cost) a branded bond fund that you looked at earlier.

Amazon has a robo-advisor available with the latest in AI and human voice-modulated response. If you want to trade internationally without being gouged on FX costs, you can do that too. Perhaps you want to be informed of the 10 biggest movers in the tech sector at 9:45 am every day. Alexa gives you a shout out and stands by to take your limit order afterward. Amazon also has an army of Series 7 certified advisors, freshly hired from Vanguard and other old guard companies. When you speak with them on the phone, you marvel at how energized and enthusiastic they are. Because of Amazon’s overall relationship with you, these reps are armed with knowledge about you that comparable financial firms could not hope to know.

Who Benefits? Who Suffers?

I have no personal knowledge of a fund management skunk works at Amazon, but as an Amazon shareholder, I’d be disappointed if they don’t already have one. I think the biggest beneficiary of an Amazon entry into fund management will be retail investors, as it should rightly be. Many investors understand that they’re not informed investors, but also don’t care to spend much time learning. For them, trust is paramount, and Amazon has it in spades.

Beneficiaries in the existing asset management industry exist too. It will be those active managers who truly add value by generating excess returns above and beyond the risk factor loadings inherent in their portfolio. Their inclusion on the Amazon platform would amplify their exposure to end investors, without the layer of costs introduced by mediation through RIAs, investment consultants, and the Rube Goldberg fund distribution machinery. Another possible beneficiary is a growing class of portfolio managers who want to free themselves of the politics and endless meetings at a typical asset management firm. Millennial money managers, especially, may enjoy working in a streamlined, virtual asset management firm without comically useless 7:00am market update meetings. A zero cost distribution channel provided by Amazon might attract entire fund management teams who can now work in peace, charge less, and make more.

The bundling of compliance overhead made possible in part, by the replacement of lawyers with AI, could drive marginal compliance costs down to zero. That’s a boon for folks who want to just manage money. In my experience, the compliance cost center has driven a large portion of expenditures in HR and technology at the largest asset managers over the past 10 years. Madoff cost his investors tens of billions of dollars, but cost the industry (and by extension, all end investors) hundreds of billions for what may be nothing but the illusion of safety.

Fixed income managers of retail assets could be in a pickle because most fixed income “alpha” relies on simple biases in systematic risk factors. Taxable core and core plus fixed income mandates typically generate their pseudo-alpha by: 1) taking excess credit risk; 2) taking excess interest rate risk; 3) selling volatility through securities with embedded short call options. The bigger the fund, the more simplistically systematic this overweighting becomes because taking such overweights is the only way to move the needle when the manager needs to keep an eye on maintaining a liquid portfolio.

In emerging markets fixed income, pseudo-alpha is generated by: 1) taking excess credit risk; 2) taking out-of-index FX risk; 3) taking illiquidity risk (i.e. buying bonds that rarely trade and trade with a yield premium as compensation). Furthermore, EM fixed income managers start ahead of the index because most indices used for marketing are sub-optimally constructed. It’s simple to avoid glaring errors such as buying a market cap weighting of the most indebted companies, and active managers shouldn’t be paid extra to avoid this silly error. Amazon’s performance attribution and disclosures, simply presented, could reveal much of fixed income alpha to be glorified beta. You would be able to compare the fund vs. a true risk benchmark, not the fund firm’s marketing benchmark.

The continuing development of better risk factor ETFs will also make it easier to outperform “active” bond funds by offering cheaper ways to take exposures to the risk factors that are overweighted by the active managers. Equity managers will have it slightly easier compared to bond managers because taking idiosyncratic risk in equities still has potential positive payoffs. One position in a tech stock may boost the overall portfolio’s performance in a big way. The story is different for fixed income. Because the upper bound on a bond’s price return is par, 20-baggers don’t exist to make up for a default incurred elsewhere in a concentrated bond portfolio. Consequently, long term bond investors are usually ill-served in taking concentrated idiosyncratic risk in bonds held to maturity. A bond’s realized return is generally its yield-to-maturity (assuming no default and reinvestment rates on coupon income that are in line with the yield-to-maturity at time of purchase).

Intermediaries in the advisory space, and others who are involved in that twilight between advising and asset allocation, will probably not be helped by an Amazon incursion, especially if it implements a human advisory function.

Implementation Risk and Priorities

Starting up a virtual distribution shelf for investment funds is no easy task, but I believe it is much easier to do today than what Amazon managed to do in its primary business of delivering physical goods from the biggest virtual storefront in the world. Investment funds take no physical space, no warehouses. You don’t need to account for bathroom breaks by human workers. In a sense, this business is ideal for Amazon as a new entrant and dovetails perfectly with the management discipline and proven execution that Bezos has shown.

Some might say that it would be hard for Amazon to be more cost efficient that Vanguard, especially given Vanguard’s mutual ownership structure. I beg to differ. I think it not only possible, but probable, that Amazon could do it both cheaper and better. Until recently, most of us believed that Walmart defined retail efficiency. Amazon’s hidden advantage is its ruthless commitment to per customer profitability. I’m willing to bet that the firm has our number. It knows our lifetime value as customers and how we stack up against our cohorts by age, zip code, film preference, etc.

Similarly, Amazon has shown that it doesn’t hesitate to fire unprofitable customers who abuse the return privilege. If it exercises the same discernment in avoiding the worst clients, incumbent asset managers stand to lose. Amazon has no legacy costs and no legacy relationships in asset management. Furthermore, it will not plead for such relationships. If you’re a 3rd party fund manager, for instance, getting on Amazon’s platform will be like the Godfather’s offer you can’t refuse.

To me, asset management is the type of utility business that Amazon could easily disintermediate, for both its own benefit and the benefit of average investors worldwide. If you thought the overbuilt status of bricks and mortar retailing provided the kindling to the Amazon explosion in retail, the abundance of asset managers (especially active asset managers) provides the uranium for an apocalypse that could be much worse.

View the original article

Amazon moving towards new delivery endeavor

Amazon confirmed that it intends to expand into a new delivery endeavor, but the company did not provide details on the schedule or scope.

“We’re always innovating and experimenting on behalf of customers and businesses that sell and grow on Amazon to create faster low-cost delivery choices,” spokesperson Kristen Kish told the E-Commerce Times. Amazon has relied on third-party shippers for many years, but those firms have tended to become overwhelmed and backlogged during the critical Christmas holiday delivery season.

The move marks Amazon’s latest effort to increase its control over logistics, which have been a central focus of the company as it has grown to become the most powerful e-commerce retailer in the U.S.

The company plans to launch the new service within weeks, The Wall Street Journal reported Friday. It initially will pick up goods from third-party sellers that already work with Amazon and deliver them to customers. The service eventually will expand to merchants that currently do not work with Amazon. It will launch in Los Angeles and expand to other U.S. cities over time, according to the Journal.

Image result for amazon store

Tiny device (Amazon’s VA) can help you in following ways to make your life calm

This tiny gadget has engaged 70% of Americans and if you were lucky enough to have an Alexa-enabled device wrapped up for you under the tree, now is the time to unpack it from the box and put her to work.

This “smart” device is getting smarter by the second. What one can accomplish from the comfort of the couch while using just one’s voice is truly remarkable. But now that you have Alexa at your disposal, what are some of the best ways she can work for you?

Image result for alexa

Alexa can make you surprise in the following ways:

She can order you dinner

Alexa connects to food delivery apps like GrubHub, Domino’s and Seamless, as well as Amazon Restaurants. Connect her to your food delivery app of choice ahead of time so that the next time your stomach starts to grumble during that Netflix marathon all you have to do is ask Alexa to reorder your favorite dish.

You can stop calling her Alexa

Is “Alexa” not exactly the name of choice for your new right-hand woman? Is “Beyonce,” TK or “hey, you!” more your style? To drop the “Alexa” which is called the “wake” word, just go to Settings and pick a different wake word.

Now if Alexa could only figure out how to serve cocktails and rub our feet, we’d be all set

She connects to Spotify, Pandora, and iHeartRadio

Simply connect your favorite music program to the Alexa app and she’ll crank out all your favorite tunes — or find some new discoveries by genre. Sick of what you’re hearing? Ask her to play the next song, or make a specific request

She can give you a ride

Lyft is integrated with Alexa, so all you have to do is ask her to request rides — she’ll even remember where to take you to work. Super handy for the next time you’re running late and need a ride STAT!

She can tell you when it’s going to rain

Alexa can spit out a basic weather forecast for your area during set-up. But if you favor details a Doppler can give you, CNET says opening the Alexa app and enabling the Big Sky skill can tell you when it’s going to rain almost down the minute. Never be caught without an umbrella again.

She can go shopping

Out of toilet paper? Short on snacks? Alexa connects to your Amazon Prime account, so all you have to do is shout out your necessities, request Prime Now and get what you need in a jiffy.

She can remind you to do things

Have something in the oven? Need to remember to call someone or move your car at a certain time? Alexa has a built-in reminder and timer — all you have to do is ask her to remind you to do something or time something and she’ll do it.

She can make calls and find your phone

Load your contacts (don’t forget your own number!) into Alexa and the next time you have to call your mom, you can do it hands-free. Lose your phone? Alexa can call that, too

Check out the list of best online shopping stores 2017

In this digital age, there’s almost no reason to brave long lines and strollers at the mall. Shopping is so much better when done from the comfort of your bed! Check out our list of the very best places to find a new and latest men’s, women’s and kids wear, then just sit back while they come to you.

  1. Ali Express                                                                                                                    Launched in 2010, AliExpress.com is an online retail service made up of small businesses in China and elsewhere offering products to international online buyers. It is owned by Alibaba. AliExpress is the most visited e-commerce website in Russia and was the 10th most popular website in Brazil. It facilitates small businesses to sell to customers all over the world, and, just like Amazon, one can find almost anything for sale. It is more accurately compared to eBay, as sellers are independent, using Aliexpress as a host to sell to consumers and other businesses.



It is an online shop having some expertise in shoes and apparel and it is known as the biggest online shoe store on the planet. It was established in 1999 by Nick Swinmurn and its base camp is situated in Las Vegas, Nevada, United States.


3. Boohoo.com

In the nine years since its launch, Boohoo has become one of the leading online retailers in providing trend-led fashion for those on a budget. Taking inspiration from celebrity style, Boohoo has won many awards for its price-savvy designs.

4. alibaba.com

It has some expertise in web-based business organizations which depend on the web and is the biggest online business-to-business exchanging stage on the planet particularly for independent ventures. It was established in 1999 and is headquartered in Hangzhou, China. This site is more known in China and Asia and it furnishes its clients with various highlights, for example, the capacity to look at between items, speedy checkout, secure installment entryway and quick convey of items to their homes.

5. Mr Porter

It is an online retailer that was propelled in 2011 and works in offering what is identified with men’s style including shoes, garments, and accomplices to make you an up-to-date man. You can discover items for significant fashioners, for example, Alexander McQueen and Ray Ban.

6. Etsy

It was propelled in 2005 and is situated in Brooklyn, New York City, United States. This online business site represents considerable authority in offering diverse vintage, high quality, and processing plant fabricated things that you may need, for example, apparel, adornments, workmanship, magnificence items and that’s only the tip of the iceberg. You have likewise the capacity to check top picks that are picked by other Etsy individuals like you.

7. Walmart

It is an American multinational retailer that furnishes you with all that you may need, for example, hardware, computer games, home outfitting, garments, jewelry’, toys, autos, blessings, sports and different things at great costs to address your financial plan and fulfill your issues.

8. Asos

It is the biggest online retail location in the United Kingdom that has some expertise in exhibiting everything identified with magnificence and mold including frill, men’s and ladies’ wear. It causes you to limit your hunt through making utilization of patterns and accumulation includes notwithstanding the capacity to purchase and offer pre-possessed garments through the online commercial center that is displayed to you.

9. eBay

It is a standout amongst the most well known online sale and shopping sites that can be found in the entire world. It was established in 1995 by Pierre Omidyar and is headquartered in San Jose, California, United States. It encourages you to purchase and offer diverse items which make this site advantageous for the two purchasers and dealers.

10. Amazon

It is known as the most well known and positioned as the biggest online retailer in the entire world and not simply in the United States. It was established in 1994 by Jeff Bezos and is headquartered in Seattle, Washington, United States. It began as an online bookshop and immediately broadened to offer all that you require. It gives its clients a few highlights, for example, various simple installment strategies, rebates, snappy checkout, quick conveyance and an extensive variety of things at great costs.