Amazon is a company that is revered by its allies and feared by its competitors. They are part of an elite group creating a new era in business where the leaders are both large and nimble, where pioneering businesses optimize revenue streams while simultaneously taking huge risks with time horizons measured in decades.
CML Pro will show us exactly which these leaders are, as we chart the companies rich enough to make the market's biggest investments into research and development, shown on the Y Axis:
It's the secret hidden in plain day light -- Amazon spends more on R&D than every company in the world in every sector. We have highlighted Alphabet / Google (GOOG, GOOGL), Apple (AAPL) and Facebook (FB) as well.
Amazon's R&D allows them to blaze a trail toward a fundamentally different economy. Most shocking of all is that Amazon's plans for the global dominance of commerce hinge on something so inaucuous, so hidden in plain sight, that almost everyone has failed to recognize it. Now that radical shift pivoted yet further toward completion.
ENTER AMAZON PRIME
Amazon prime is at the heart of this transformation, and news quietly broke that takes Amazon one step closer to being the de facto standard for all online business.
Free shipping is a critical part of the frictionless commerce the system is moving toward. Users opt in to the Prime Membership with a simple rationale: "If I order at least 20 things a year that would have cost at least $5 to ship, I'll actually be saving money."
Through this reasoning, the consumer has persuaded themselves to not only pay Amazon $99 per year, but also to buy more goods to ensure they've spent their $99 well.
And the effect? CML Pro shows us the staggering Amazon Revenue chart:
The growth is so explosive it looks made up, topping $107 billion in the last twelve months.
And, what's of paramount importance to the new development, is that Amazon has control over a critical lever influencing consumer adoption of Amazon Prime. Yesterday we found out that Amazon just cranked the lever in their favor:
"Less than three years after Amazon increased the minimum purchase threshold from $25 to $35 for customers to qualify for free “Super Saver Shipping,” the world’s largest e-retailer is hiking the minimum purchase requirement again — this time to $49."
source: Time Money
Amazingly, that's all it takes. By cranking up the minimum order for free shipping without the Prime membership, the Amazon user automatically adjusts expectations for the cost of not being an Amazon Prime member, and new Prime memberships and additional orders flow in.
For any users who were on the fence about becoming part of the new, frictionless economy, Amazon Prime has simply tacked on, for free for Prime members, what is the entire business line of companies as vital as Netflix and Spotify.
Using Forbes reporting of Netflix (NFLX) users at 62 million, Amazon prime likely already has more customers with access to streaming video than Netflix. This is just another demonstration of the power and reach of this pioneering company.
Netflix, so far, has fought off every attack attempted by media companies, but a technology innovator as diverse as Amazon is a totally different caliber of competitor.
Amazon Prime is simply the future for this company. Memberships to the service are growing at a staggering 50% per year. As a Wells Fargo analyst said about Amazon Prime:
If I had to isolate one (reason for faster growth), it's the adoption of Prime and utilization of Prime.
Amazon's aspirations are nearly limitless, and, if successful, they will fundamentally change the way consumers shop. Consider a perfect example: "Prime Now" - Amazon delivery in under 60 minutes. If that sounds ridiculous, try this: the company has already launched it in 17 cities, including San Francisco.
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ONLY THE BEGINING
Amazingly, this is only the beginning. Through our research we've uncovered a whole new business line Amazon looks to be entering that has huge implications for the company's future. To get the full Amazon research dosier, sign up for CML Pro now.
APPLE, GOOGLE AND FACEBOOK
Of all the technology companies attemping to replicate Apple's successes, perhaps only Amazon can truly compete with Apple (AAPL) directly, for a simple reason: Amazon is the only other technology company that has created an entire ecosystem from device, to application store, to streaming media, to delivery of products to your home. With "The Amazon Echo" they are even making inroads into the device you stream content through.
Google (GOOG, GOOGL) and Facebook (FB), in large part, still depend on someone elses ecosystem, someone else's device, someone else's services. They are fundamentally both advertising still companies, despite how many tools and services they have come to offer.
THE NEXT WINNERS
If any of the information in this article feels like a surprise, in many ways it is. The trends and themes are the backbones to growth and outsized investment returns.
CML Pro research sits side-by-side with research from Goldman Sachs, Morgan Stanley and Merrill Lynch on professional terminals but we are the anti-institution; and make this type of research available to our retail family for just $10 a month.
and we have named our 'Top Picks' for each theme. In fact, here are two more of the trends that will radically affect the future. Let's start with self-driving cars.
This is staggering growth. But there's one company - a single gem, that will power all of this. It actually invented the technology behind the parallel computing power that is required for this trend to survive and already has Tesla and 50 other auto manufacturers as customers. This single company is on CML Pro's 'Top Picks' list and we believe the stock could tripe within five-years.
Then there's cybersecurity.
The growth in this segment is a near certainty, even if projections come down, this is happening. CML Pro has named the single best cybersecurity company to benefit from this theme. We believe it too could triple within five-years.
These are just two of the dozen themes we have identified and this is just one of the fantastic reports CML Pro members get along with all the visual tools, the precious few thematic top picks for 2016, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.
Thanks for reading, friends.