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-- just got Amazon's earnings about an hour ago -- Mix for what everyone's talking about isn't so much their numbers but they're moved into the online streaming game.
Amazon is trying to -- -- -- Netflix by offering their own original programming on their prime service.
And now there -- rumors that Amazon will start selling its own video streaming box to compete with roku an apple TV let the video streaming.
-- today's money power panels here to break it all down -- Analysts -- the problem -- America wealth management president late -- -- and steeple necklaces portfolio manager Chad Morgan Lander.
Thanks all of you for joining us she would you what you think those numbers because the weak sales forecast is what caught a lot of people's attention.
I think Amazon is a very strong company it's consistently grown consistently profitable and well capitalized.
In fact we have a price target -- -- 335.
Dollars on the stock for twelve month forecast.
And you know earnings were growing and -- revenues rather were growing by twenty plus percent so what we look at it as much more of an optimistic look.
I -- -- late you know they missed their revenue from the asked about it I mean they -- they weren't even if they weren't able to get what the street was expecting.
Right I don't know that but you know what late gotten.
-- Right I hear that but at the same time I mean it that here's a company that has continued to expand their revenue.
You know do you even during bad times 20012002.
I mean -- maybe not as great as we hope -- would be.
But it's still in the plus.
He -- what worries me about this company is that they go with the low price leader in order to just grab market share and I wonder about -- at some point.
If that becomes -- very tough strategy to keep going to Kindle for example is something that they have sold.
You know basically for nothing in order to get people on the door on Amazon prime where you sign up for the year 79 dollars free shipping.
-- a lot of volume but does it cut into what they actually make.
Public expenditure on.
Race -- -- the light the fire is getting hit it where it counts and that's at the margins.
So what you're seeing as -- shrinking margin and you're not going to be able to see.
That return on investment they're spending so much on this new technology.
He just to mention that there are about -- possibly roll out this new box and -- -- for streaming video they're.
Investing in a lot of their acts as well for streaming movies that's a lot of money and see you're -- in his -- That having a long term growth impact for met -- many quarters.
-- how do you feel.
Up their dive into the streaming business I mean they started with Amazon -- now you hear about Japanese -- setting up his -- studios -- an am original contact it Netflix obviously has been incredibly successful of this so far does -- make you feel good about AM Saturday to begin nervous.
About them spending too much money and spreading themselves defense.
It certainly doesn't make me feel nervous I mean keep keep in mind Amazon has revenues of 75 billion dollars and this is going to be a long term strategy for the company.
The bill that -- ecosystem.
So it's going to be a net loser okay.
The next several years but perhaps over -- next three to five years out.
They'll be a contributor so.
Amazon is what -- -- is strategically focused on the cloud.
Are they will be going against some pretty tough competition that -- -- like the likes of apple and Google.
But you know what eight.
If you just exclude these these projects the company still he's a very.
Powerful company on the -- growing revenue stream as well as their earnings -- Latest I mean I'd love to hear your thoughts on that because now they're talking about going air we're hearing potentially that they could have their own streaming box it kind of reminds -- mean I was around when they said they were gonna have an.
And we also collapsed and then we see how that turned out I mean -- it's right there with the iPad dominating it's created a whole business for them.
Do you think that that having a streaming video box would be -- good life.
You don't really look for a forget Amazon as a distribution company now they they they have a distribution hub they wanna take advantage of that.
This is this box along -- it also look for a -- I think is just a win win they continue to expand their distribution.
Platform you know kind of -- so far indefinitely and really Jeff -- -- let's leave let's let's realize that his his -- seems to be expander die.
-- not I mean it's that -- -- he makes a great point that they're just a distribution company -- -- -- to broaden your mind as Jeff is us has maybe.
To think about what that means and how you keep innovating -- that futures that you can be the number one distribution point of whatever kind of need your entertainment we're talking about -- and we're not.
Really talking about also be that Netflix then going up against Netflix -- I don't know that we'll Netflix has its original programming to and -- dvd rental was really be at.
You know that's what impact did those revenues and why we -- such big numbers coming out of their earnings yeah are a couple days ago.
They're also having his original program -- having new subscription.
Coming into Netflix and I think Amazon with their new studios they're trying to do the same thing with all these pilots that they just put up on their site.
They're trying to but -- get the last word for you I mean are they too late to that party because I had an apple TV I'm an Amazon prime customer I wanted to look at their video they didn't have that much on -- in the meantime I just signed up and got Netflix.
So I don't know and a prime customer that would have gone there but now.
I have Netflix and I have prime -- in my home and I think -- you know this is a multi year staged type of development.
So beginning in early.
And -- this is going to take some time to progress and to mature.
The companies -- very well managed company it's highly profitable it's very very.
Dynamic in their outlook and you know it's a direct play on the -- yeah.
All right thanks all of you.
Thank you -- -- the coming up.
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