Tag Archives: amzn

Google’s Pichai Sees ‘Move From Mobile-First To An AI-First World’

Apple ( AAPL ), Microsoft ( MSFT ) and other rivals of Alphabet ( GOOGL )-owned Google had better raise their game in artificial intelligence. While Apple, Facebook ( FB ) and Amazon.com ( AMZN ) have AI research projects underway, the field is one where Google aims to set itself apart from rivals. So said Sundar Pichai, Google’s chief executive, Thursday in an open letter. Google founders  Larry Page and Sergey Brin normally write the founder’s letter , in the tradition of Berkshire Hathaway ’s ( BRKA ) Warren Buffett. But Pichai wrote this year’s note. Pichai says that AI is key not only to its core search business and mobile computing, but also to Google’s push into the enterprise (corporate) market and cloud computing. “A key driver behind all of this work has been our long-term investment in machine learning and AI,” Pichai wrote. Google has pushed Android software-based mobile phones into a global power vs. Apple’s iPhone. (The Oracle ( ORCL ) vs. Google copyright battle over the Android OS is slated to resume with a second trial on May 9.) Pichai says that Google’s AI will be a difference maker. “Looking to the future, the next big step will be for the very concept of the ‘device’ to fade away. Over time, the computer itself — whatever its form factor — will be an intelligent assistant helping you through your day. We will move from mobile-first to an AI-first world,” he said. While Apple and Google have dominated in the world of mobile apps, there could be competition down the road. Facebook recently introduced “chatbots,” while Microsoft ( MSFT ) launched its “Bot Framework” software tools for developers. Both rely on AI. Google also aims to capitalize on AI in the enterprise market vs. Microsoft and others. “Google started in the cloud and has been investing in infrastructure, data management, analytics and AI from the very beginning. We now have a broad and growing set of enterprise offerings: Google Cloud Platform (GCP), Google Apps, Chromebooks, Android, image recognition, speech translation, maps, machine learning for customers’ proprietary data sets and more,” Pichai said. “As we look to our long-term investments in our productivity tools supported by our machine learning and artificial intelligence efforts, we see huge opportunities to dramatically improve how people work. Your phone should proactively bring up the right documents, schedule and map your meetings, let people know if you are late, suggest responses to messages, handle your payments and expenses, etc.”

Why Right Now Is The Perfect Time To Buy Facebook Stock

Loading the player… After Facebook ’s ( FB ) stellar quarterly report Wednesday evening, the social networking giant’s stock is trading in buy range in the stock market today . The breakout comes as other big names have recently neared buying opportunities but crumbled on their quarterly results, including Google owner Alphabet ( GOOGL ), Microsoft ( MSFT ) and Starbucks ( SBUX ). Facebook’s earnings jumped 83%, while sales grew 52%. Both topped views and marked a third straight quarter of accelerating growth for the top and bottom lines. Shares jumped 8% in huge volume, hitting a new all-time high in intraday trade and breaking out of a cup-with-handle base with a 117.09 buy point. Shares are in buy range to 122.94. But the stock is now trading at the lower end of the day’s range, about 50 cents above the buy point. Facebook earns an IBD Composite Rating of 95 out of 99, meaning its shares outperform 95% of all stocks in the market, based on fundamental and technical factors. IBD’s Take: How healthy are the shares of Facebook and its rivals? Find out at IBD Stock Checkup Alphabet gapped below its 50-day line after its report last week. Shares tested support at the 200-day line in Wednesday’s session and are breaching that level today. Alphabet is now trading 12% below its February high, down 1.4% in intraday trade. Microsoft also gapped below its 50-day line in the wake of its results last week. Shares are breaking below their 200-day line in intraday trade Thursday, falling 1.6%, and are about 11% below their December peak. Starbucks is now trading below its 50-day and 200-day lines, and hit a new two-month low in intraday trade as it fell a fraction. Shares are 11% below their October high. And while Apple ( AAPL ) wasn’t near buy range ahead of its report Tuesday night, shares gapped down to a two-month low on disappointing results. Apple is 27% below its high, reached exactly one year ago today, with shares down 1.8%. Meanwhile, Amazon ( AMZN ) is trading in buy range ahead of its quarterly report after the close. Amazon risked dropping back below the buy zone in Wednesday’s session, but shares are trading up 1% today in anticipation of the report.

How E-Tail Startup Jet.com Is Taking On Giant Amazon.com

With a potential $1 billion in 2016 revenue and $803 million in funding, e-tail startup Jet.com has some heft, but it’s still a lightweight compared with e-tail king  Amazon.com ( AMZN ). But that doesn’t faze Jet CEO Marc Lore, who has a strategy, which he laid out for IBD in a phone interview from the company’s Hoboken, N.J., headquarters. It boils down to two big ideas: that e-commerce overall will soar from a $300 billion market to $1 trillion in the next 10 years; and that Amazon can’t possibly take the whole thing. His third point underlying both big ideas is that Jet is targeting shoppers that Amazon is not — those obsessive about saving money. “W e’re going after a different type of customer with a different need,” Lore said. “ We are about saving people money and empowering them to shop in a smarter way. And o ur technology is built to help consumers and retailers pull costs  out of the overall ecosystem. So it is   a more efficient way to buy product.” Jet aims to present shoppers with an experience that more closely matches what they’d find in a store. Every product, for example, has a single view. That’s unlike e-tail giants like Amazon or eBay ( EBAY ), where shoppers are confronted with multiple, competing listings from a number of sellers. Instead Jet.com finds the best price for a given product after searching multiple sellers and displays. So, for example, in a search for Levi’s jeans, a shopper would see a single listing for each style of jeans. The single product view may also help Jet.com avoid the SEO challenges that have plagued eBay , which has a longtime beef with search leader Google. Jet.com Secret Sauce Is ‘Dynamic Pricing’ But the real secret sauce for shoppers is the company’s dynamic pricing. Essentially, customers are rewarded for buying multiple items, which decreases shipping costs and thus decreases customers’ costs. Then, when the customer goes to check out, Jet’s algorithm behind the scenes figures out which sellers are the most efficient in terms of shipping and price, so if one seller is closer but charges more for shipping, you’ll buy from a more distant seller that charges less for shipping and thus results in a lower overall cost for the customer. “Ou r technology is built  more like a real- time trading system than it is an e-commerce site,” Lore said. “A s people shop,  we’re repricing products to reflect the true underlying economics of getting those products to the customer,  based on what products are already in the (checkout)  basket and based on how far away those products are from where the customer lives.” Jet continues to tweak its website. When Lore launched the venture in January 2015, the company used a membership program similar to  Costco ‘s ( COST ) to generate profit. That didn’t last long, and the company changed its business model in October, hiking prices. Though there were reports the change signaled trouble , several analysts interviewed for this report said startups often make strategic changes early on. Amazon’s E-Commerce Empire As shown by its fundraising and number of investors, Jet.com has its believers. Its venture money comes from China e-commerce giant Alibaba ( BABA ), prominent Silicon Valley venture capital firms such as General Catalyst Partners, and the venture units of financial powerhouses Goldman Sachs ( GS ) and  Fidelity National Financial ( FNF ), among others. The company is valued near $1 billion, huge for any startup but a blip compared with Amazon’s $286 billion market cap. Amazon has annual revenue topping $100 billion — not including the more than $131 billion in third-party sales — and is catching up to longtime No. 1 retailer  Wal-Mart ( WMT ). Amazon also has a nascent payments business that competes with PayPal ( PYPL ). To facilitate its e-commerce sales, the company has elected to get into the ocean shipping business, which has the potential to generate hundreds of millions in free cash flow . And that’s just the e-tail business. In E-Tail, Go Big Or Go Home Conventional wisdom holds that one strategy to beat Amazon is to pick and choose categories of goods that Amazon is not strong in. One, for example, is fashion — though Amazon recently launched its own line of apparel and a live-streaming TV show . Alibaba-funded e-tail startup ShopRunner is taking aim at Amazon that way. Lore chose another route. In Lore’s view of the e-commerce universe, mass market firms — those competing across a range of product categories — are the only viable firms. That’s because, Lore says, whether a website is selling one category of products or 10, you need to push them “through the same set of pipes.” And thus, he says, it makes more sense to leverage the same set of fixed costs to increase sales. “If you have 10 times as many categories and 10 times the gross marketplace value going through the same set of pipes, you’re going to get a lot more leverage in your fixed expenses, and your expenses as a percentage of revenue is going to be a lot lower,” Lore said. “It makes it really difficult for the specialty guys to compete on price with mass merchants for that reason.” Lore himself has a fair bit of experience with Amazon and its CEO, Jeff Bezos. As founder and former CEO of Quidsi, known for its Diapers.com, Lore spent years facing off against Amazon. Ultimately, Bezos killed Diapers.com with a price war — the e-tail giant can afford to lose money for longer than its often smaller competitors — and bought the company from Lore. The CEO stuck around for about three years but ultimately left in 2013 . A little more than a year in, Jet.com remains one of the few e-tail companies in the U.S. that’s openly challenging Amazon’s dominance. With $1 billion in gross merchandise value — a figure often very close to revenue for e-tail firms — and 3.5 million registered shoppers, Lore already has taken Jet on a long flight, with a long runway ahead.