Ben Hur 2/5/2008 Amazon(AMZN) Stock Presentation

This is my presentation to urge the Club to purchase Amazon(AMZN) stock.

We were told to stick within 2 minutes so i was hurrying, and i'm recovering from the flu so i sound horrible. Apologies on both counts.

My Notes:

Friday: 4Q earnings report
- good report, fourth quarter profit more than doubled to $207M
- why did the stock go down?
- 4Q sales were up more than expected
- 4Q margins were less than expected
- Wall Street didn't like this
- Ben Hur does like this, because...
- Amazon is extremely price competitive in order to continue to capture most of the growth, which will continue for years to come
- it is almost nonsensical to dock them for low margins

What is Amazon?
- THE giant of online retail
- so what? where do they go from here?
- 2 things: digital products and a host of infrastructure services

Digital Products
- Amazon has sold CDs since 1998
- late last year, they added a digital music store
- launched vs iTunes
- price competitve
- 1/3 the size of the library but growing fast
- totally DRM-free: plays on all devices
- Amazon's Kindle eBook Reader sold out in 5.5 hours
- ties into Amazon's eBook library to purchase and read digital books
- Last week, Amazon purchased Audible.com, an audiobook distributor
- Audible.com accounts for about 75% of the web audiobook market

Infrastructure Services
- everyone knows Amazon has enormous infrastructure, but recently they started selling it
- they are actively developing a host of "pay as you go" infrastructure services that allow individuals to share Amazon's backbone
- most interestingly are Amazon Web Services lets you use Amazon's infrastructure to host your web assets
- instead of going to a webhost to get your site on the web, you let Amazon host your site
- implicit quality: if its good enough for Amazon, isn't it good enough for you?
- magic of metered access: Cornerstone uses it for backups, pays pennies a month
- AWS has 330,000 customers, ranging from startups to Fortune 500s
- at the earnings report, they claimed that AWS traffic has now outstripped Amazon.com traffic
- given my technology, this is going to be a hot technology industry in the next 5 years, and Amazon already has a serious leg up

Category:

Education

Tags:

• stock
• investing
• amazon
• business

[omarzak]

wicked awesome!