Shares of eCommerce giant Amazon.com, Inc [stckqut]AMZN[/stckqut] have gained more than 50% in the last one year, driven by the twin growth engines of eCommerce and cloud computing. These engines of growth are likely to continue their performance going forward making AMZN stock a good buy. Both the eCommere market and the cloud computing market will continue to grow. And now, Amazon.com Inc has another potential growth driver in its Echo devices and Alexa digital assistant.
Rising popularity of Amazon Echo.
In the last year, there has been a lot of buzz around Amazon’s Echo devices and its digital assistant Alexa. Alexa was everywhere during the CES 2017. According to a CIRP report, Echo’s brand awareness increased to 82% in the United States last year compared to 47% awareness level at the end of 2015. The rise in the product awareness was driven by strong promotion by the eCommerce giant on both conventional media and its eCommerce platform.
Echo was one of the most sold devices on Amazon.com during the holiday season last year. In a press release, Amazon had said that “Echo and Echo Dot were the best-selling products across Amazon this year, and we’re thrilled that millions of new customers will be introduced to Alexa as a result. Despite our best efforts and ramped-up production, we still had trouble keeping them in stock. From turning on Christmas lights and playing holiday music to shopping for gifts and asking for help with cookie recipes, Alexa continues to get smarter every day”.
Source: Amazon.com Inc (NASDAQ:AMZN) Stock: A $10 Billion Revenue Opportunity For Amazon.com Inc