In the early days of slow dial-up connections, Amazon and
E-bay were pioneers of the online shopping evolution. When Netscape introduced the point-and-click
web browser in 1994, it enabled these companies to take on a whole new meaning in
shopping convenience. Amazon was the first company to introduce the one-click
ordering that has now become the industry standard. In fact, it had such a
profound impact on the way consumers shopped for even their everyday goods that
stores like Walmart and Target were forced to introduce online stores of their
own.
Other sites have attempted to mimic the online giant, but
Amazon’s status as the pioneer of online retail has enabled the company to
remain dominant in the industry. However, that status is slowly fading. Despite
boasting a market cap of $115 Billion and 22% increase in first quarter 2013
revenue, the stock has failed to satisfy investors who have become weary of
major competitors improving the online shopping experience for consumers. Most
valuations indicate that investors should avoid purchasing the stock (at least
for now).
Still, don’t be so quick to take AMZN off your watch list.
Historically, Amazon has had a way of bouncing back to satisfy shareholders.
They certainly were evolutionary in the online shopping experience and in my
view, the visionaries who created the online shopping giant still have a few
tricks up their sleeves.
