Tag: Amazon

Why Would Jeff Bezos Buy An Old Fashion Newspaper?

Posted on by Adam Hewison

On Monday, it was reported that Jeff Bezos of Amazon (NASDAQ:AMZN) fame, paid a reported $250 million in cash to purchase the Washington Post (NYSE:WPO) newspaper. I say, "congratulations Jeff," it was a brilliant strategic move on your part. Now it must be said that this was not Amazon purchasing the Washington Post, but rather Jeff Bezos personally purchasing this property. So you have to ask yourself, what would a savvy Internet guy want with a newspaper?

Here's my take on it, Amazon has become a juggernaut on the Internet in terms of Internet commerce. I use Amazon myself like millions of others and it is a great service. When you're looking for a product, it's easy to go to Amazon and forget most every other site on the Internet.

Somewhere along the line, there is going to be some politician who will say that Amazon is a monopoly and should be broken up, as it stifles competition. So what's the perfect defense and check mate for an attack on your biggest investment and Internet baby? To me, owning and controlling the most powerful newspaper in a politically-driven town like Washington D.C., could give him power not attainable through other avenues.

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Put the power of the Trade Triangles to work for you

So the question is, can Jeff Bezos work his same magic with the Washington Post? Just look back in history at how William Randolph Hearst controlled the news and the news media in America, and the power it gave him. Whoever controls the media, can have a huge influence on the sentiment and direction of the country. That I think, is the ultimate goal of Mr. Bezos.

I think Jeff Bezos' plan for the Washington Post is going to be very similar to the plan he has for Amazon. Forgo profits, and build until you eventually create unstoppable momentum and you become a king maker in the news industry.

Don't think for one moment that Amazon is not politically smart. A little over a week ago, employees of Amazon contributed $116,000 to the democratic party for President Obama to fly down to Chattanooga, Tennessee to be at the opening of one of their new distribution centers.

In today's video, I will be looking at the Washington Post (NYSE:WPO) and seeing how our Trade Triangles fared in trading this stock.

Have a great trading day,

Adam Hewison
President, INO.com
Co-Creator, MarketClub

From Books to Everything Else

Posted on by Adam Hewison

When Jeff Bezos was searching for a name for his new internet start-up back in 1994, he wanted something that was impressive and sounded big. You see, Jeff wanted to sell books at a discount on the Internet and size to Jeff was important. He believed that his small start-up in time, could effectively become a category killer for the likes of Barnes and Noble and Borders.

The name Jeff eventually decided on for his new start-up was Amazon (NASDAQ:AMZN), and like the mighty Amazon itself, whose mouth is growing an average of two meters every year, Jeff wanted volume. So what better name to choose since by volume, the Amazon River is the world’s largest river.

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So what are you waiting for? Let's get started right away!

From books to everything else, Amazon (NASDAQ:AMZN) has become a juggernaut in the marketplace and now dominates sales on the internet. Jeff had all the stars aligned with his new company, the right name, the right concept and the right timing back in 1995 when Amazon opened its website for business.

Now CEO Jeff Bezos was not looking for quick profits or to flip his company, rather Amazon's goal was to grow free cash flow, basically cash from operations less all other charges. That is the key distinction for Amazon and one that separates it from other Internet and earnings-driven companies. As one Wall Street-er said, "Earnings are an opinion; cash is a fact."

Kudos to you Jeff, and thank you for providing a great stock to trade with our Trade Triangles.

Today, we will be analyzing the stock of Amazon (NASDAQ:AMZN) in detail. The video runs about 2 minutes.

Enjoy the video, and every success in your own trading.

Adam Hewison
President, INO.com
Co-Creator, MarketClub

Today's Video Update: Stocks Rise Ahead of Earnings

Posted on by Adam Hewison

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 8th of July.

Earlier today we posed the question, "Are the odds in your favor for a up market in July?" Well, it certainly seems so, given this mornings trading action, all the indices are on the plus side of the ledger so far for the month.

Today's Profit Taking In The Crude Oil Market Doesn't Change The Trend
Crude oil is seeing a little bit of profit-taking coming into the market after its recent sharp run up. I have an upside target zone of $110 level for crude and I expect the upward trend to continue for a while longer. Look for any pullbacks to present buying opportunities rather than a shorting opportunity. The trend is clearly established to the upside, so trade accordingly. Continue reading "Today's Video Update: Stocks Rise Ahead of Earnings" →

Today's Video Update: GDP Misses, But The Fed Will Buy Us Out Of Slow Growth Right?

Posted on by Adam Hewison

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 26th of April.

GDP Slows
Gross Domestic Product (GDP) expanded at a tepid 2.5 percent annual rate, the Commerce Department reported on Friday, after growth nearly stalled at 0.4 percent in the fourth quarter. The dismal increase missed economists' expectations for a 3.0 percent growth pace. I guess a trillion dollars a year in stimulus spending doesn't get you very much anymore. Not to worry, as the Fed is supporting stock prices and that's all that seems to matter to this administration. Continue reading "Today's Video Update: GDP Misses, But The Fed Will Buy Us Out Of Slow Growth Right?" →

Today's Video Update: Can We Trust This Market?

Posted on by Adam Hewison

Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 24th of April.

Can We Trust This Market?
A number of years ago when Ben Bernanke took over the chairmanship of the Fed, little did anybody predict that he would be single-handedly supporting the entire stock market. I asked several colleagues of mine over the past few days, "what would happen should the quantitative easing that Ben put in place stop?" They all gave me the same answer, "the market would crash." That is not a particularly compelling reason to own stocks, in my opinion, if stocks are been artificially held up. I have said this before, the trend is your friend, and as far as the DOW is concerned, the trend remains positive.

What Now Apple?
Yesterday, Apple (NASDAQ:AAPL) announced their earnings and while there was some good news, there was also some bad news. The bad news is that their profit margins continue to shrink and that coupled with no new innovation coming out of Apple anytime soon, does not spell out a particularly rosy scenario for this stock. Continue reading "Today's Video Update: Can We Trust This Market?" →