MOONSHOT MONDAY Amazon’s AWS Spinoff

What if Amazon spun off AWS at a $150B valuation, sold 25%, raised $38B in cash and reinvested it into expanding its retail business? We think this makes a ton of sense a bunch of different levels. As AWS and Amazon’s retail ambitions continue to grow, competition is getting increasingly wary about storing sensitive data with Bezos’ empire. This problem isn’t going away, and could be preemptively addressed with a spinoff.

LINK – Amazon investor website: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-irhome
LINK – Amazon Q2 ’17 financial results: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=2289566
LINK – AWS global infrastructure: https://aws.amazon.com/about-aws/global-infrastructure/
LINK – Target leaving AWS: https://www.geekwire.com/2017/report-target-done-supporting-amazons-retail-empire-giving-cloud-business-amazon-web-services/
LINK – Wal-Mart making vendors leave AWS: https://www.wsj.com/articles/wal-mart-to-vendors-get-off-amazons-cloud-1498037402
LINK – AWS worth between $160-$239B: https://www.geekwire.com/2017/may-time-amazon-seriously-consider-spinning-off-amazon-web-services/
LINK – AWS / Netflix case study: https://aws.amazon.com/solutions/case-studies/netflix/
LINK – AWS / Nordstrom case study: https://aws.amazon.com/solutions/case-studies/nordstrom/
LINK – Snapchat spending $1B on AWS: https://www.geekwire.com/2017/snap-commits-spend-1b-amazon-web-services-next-five-years/
LINK – HyperChange vid, what fashion company should Amazon buy: https://www.youtube.com/watch?v=Nh3AzInzucY

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Disclaimer: This video is purely my opinion and should not be regarded as factual information. I am not a financial advisor. This is not a recommendation to buy or sell securities. Do not assume any facts and numbers in this video are accurate. Always do your own due diligence.

Comments

hokie says:

are you saying AWS becomes a separate entity with no ties to Amazon or Bezos? In that case I can see it resolving issues with competing retail wanting to protect their data. That said, retail and commerce competition probably makes up less than 1% of AWS’s revenue stream so I’m not sure how big an issue that really is…

Loving the vids man. Keep them coming

jimmy moy says:

Interesting idea. I wouldn’t want this to fall into what hpe/hpq has become, an ever splitting apart company to “unlock value” by creating bodies of new chain of commands and boards with high salaries. No surprising Walmart is trying to hurt amazon’s revenue by trying to scare some retailers away. I think it would be a breach of contract if amazon did mine their data and opens them up to possible lawsuits. Amazon is breaking grounds, making innovations vs walmart.

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