From Seeking Alpha:
Amazon.com’s narrative continues to get more interesting, as the e-commerce giant, while still having a lot of upside in that market, is maintaining its market lead in cloud services while moving quickly to take a potentially dominating position in the home automation market. That market is expected to quickly grow to a $100 billion industry by 2020, with a lot more room to grow after that.
Assuming it continues to grow its e-commerce share in the U.S. and enjoys international growth in the markets it serves there, it has the potential to challenge Apple as the biggest company in the world over time.
Why I’m so optimistic there isn’t because of the ongoing growth in online retailing and cloud services, but the potential in the Internet of Things, where it could produce an extraordinary third business that will generate billions of revenue annually.
With Apple and Google in particular struggling to come up, with products outside of smartphones in the case of Apple, and search revenue with Google, it reinforces my thesis that Amazon, when it has all three of these businesses going on all cylinders, will become a major growth story even with its market cap at just under $400 billion.
Link to the rest at Seeking Alpha
Amazon announces earnings after the bell today. I hope they live up to the headline on this piece.