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2020 Could See the End Of Amazon as We Know It: NYU Prof. By Mrinalini Krishna | July 25, 2017 — 6:00 AM EDT
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That seems like an unlikely prediction of gloom for a company that is on a mission to be the marketplace for everything and is soaring on the back of its technology and logistical might. Yet New York University Professor and founder of L2, Scott Galloway believes that even though Amazon will be the first to cross the trillion dollar market cap milestone, it is also likely to be broken up.
The Case For Breaking Up Amazon
“By 2020 Amazon will be our first trillion dollar market cap company but don’t begin celebrating yet, as soon after a district attorney will realize that the fastest blue line path to the Governor’s mansion will be to go after Amazon and break them up as we begin to connect the dots and realize this amazing is destroying jobs faster than we can recreate them,” Galloway said.
That fear was echoed in the immediate aftermath of the Amazon-Whole Foods deal when the company had to rush to clarify that it is has no current plans to automate cashier jobs, according to CNBC. But the fact the Amazon has already tested Amazon Go, a store with minimal human curation, in Seattle shows those worries are hardly illegitimate.
Bloomberg reported that as of March Amazon employs 351,000 people, up 43 percent compared to last year. Jeff Bezos announced the creation of 100,000 jobs in January.
Perspective On Growth and Potential
That aside, Galloway’s analysis points out exactly the kind of behemoth Amazon has become and the potential it still has to grow.
Market Cap: In just five years, Amazon's market cap has increased more than 360% from close to $107 billion in July 2012 to within striking distance of half a trillion dollars now. Keeping that history and its aggressive expansion through acquisitions in mind, Amazon's market cap doubling to over a trillion dollars in the next three years doesn't seem entirely implausible. (See also: Amazon Hits All-Time High as Analyst Predicts $1 Trillion Market Cap.)
Read more: 2020 Could See the End Of Amazon as We Know It: NYU Prof. | Investopedia http://www.investopedia.com/news/2020-could-see-end-amazon-we-know-it-nyu-prof/#ixzz4o9YEVqBw
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2020 Could See the End Of Amazon as We Know It: NYU Prof. By Mrinalini Krishna | July 25, 2017 — 6:00 AM EDT
SHARE
ADD TO WATCHLIST
AMZN
1,024.17 -2.09%
That seems like an unlikely prediction of gloom for a company that is on a mission to be the marketplace for everything and is soaring on the back of its technology and logistical might. Yet New York University Professor and founder of L2, Scott Galloway believes that even though Amazon will be the first to cross the trillion dollar market cap milestone, it is also likely to be broken up.
The Case For Breaking Up Amazon
“By 2020 Amazon will be our first trillion dollar market cap company but don’t begin celebrating yet, as soon after a district attorney will realize that the fastest blue line path to the Governor’s mansion will be to go after Amazon and break them up as we begin to connect the dots and realize this amazing is destroying jobs faster than we can recreate them,” Galloway said.
That fear was echoed in the immediate aftermath of the Amazon-Whole Foods deal when the company had to rush to clarify that it is has no current plans to automate cashier jobs, according to CNBC. But the fact the Amazon has already tested Amazon Go, a store with minimal human curation, in Seattle shows those worries are hardly illegitimate.
Bloomberg reported that as of March Amazon employs 351,000 people, up 43 percent compared to last year. Jeff Bezos announced the creation of 100,000 jobs in January.
Perspective On Growth and Potential
That aside, Galloway’s analysis points out exactly the kind of behemoth Amazon has become and the potential it still has to grow.
Market Cap: In just five years, Amazon's market cap has increased more than 360% from close to $107 billion in July 2012 to within striking distance of half a trillion dollars now. Keeping that history and its aggressive expansion through acquisitions in mind, Amazon's market cap doubling to over a trillion dollars in the next three years doesn't seem entirely implausible. (See also: Amazon Hits All-Time High as Analyst Predicts $1 Trillion Market Cap.)
Read more: 2020 Could See the End Of Amazon as We Know It: NYU Prof. | Investopedia http://www.investopedia.com/news/2020-could-see-end-amazon-we-know-it-nyu-prof/#ixzz4o9YEVqBw
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