Talking points

How Amazon is changing the world

The online retailer has become a major disruptor that is changing the way we shop

20/02/2018

Alina Gregory

Alina Gregory

Associate Portfolio Manager

Amazon now has more than 300 million active users, a market cap bigger than its next four largest US peers combined (Home Depot, Priceline, Netflix and Lowe’s) and one of the most valuable brand names in the world.

No longer just an online bookstore – or even ‘the everything store’ – today Amazon is a marketplace for third party and private label products, a manufacturer of electronic devices and producer of media content. It also offers streaming and free shipping through Amazon Prime and a leading cloud computing service through Amazon Web Services.

Growing impact

Its share of retail spending is also increasing; in the past two years, one in every two dollars spent in retail was through Amazon. One in four people now check Amazon’s user reviews while in a physical store.

The company’s unparalleled investment in last-mile infrastructure has left its competitors behind and has given rise to free next-day delivery for Amazon Prime members in just one click. And for those who think that one click is one click too many, the Amazon Echo will add items to your shopping cart if you simply ask Alexa.

Currently, 52% of US households have an Amazon Prime account, while only 49% have a landline. Things are changing and Amazon is leading the charge.

In a world where digital companies like Amazon are causing huge disruption to every business sector, Cazenove Capital’s tried and tested stock picking methodology allows us to identify the companies that are likely to weather the digital storm and emerge even stronger.

Author

Alina Gregory

Alina Gregory

Associate Portfolio Manager

Alina joined through the Graduate Programme in 2014 after reading Economics with French at Durham University. She holds the Investment Management Certificate and is currently studying towards the CFA qualification. 

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 12 Moorgate, London, EC2R 6DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

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