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Amazon over private equity is simple. 1. The numbers on Amazon's quarterly reports are huge. They are playing in the big leagues. 2. Everyone with money reme
by htag 4y ago
Amazon over private equity is simple.
1. The numbers on Amazon's quarterly reports are huge. They are playing in the big leagues.
2. Everyone with money remembers when they were just a book store and the dotcom bubble burst. The narrative that they can go into a market and dominate it in a few years is a strong one everyone has a lot of belief in.
3. They are one of the leaders in using technology to upgrade traditional business lines. Every industry still experiences Fear of Missing Out on the latest technology change. Imagine how great of a position Sears Catalog would have been in if they could have held their strength for another five or ten years. They had brand name recognition, supplier relationships, warehousing, distribution, and physical locations for returns.
4. When a tech company enters a market there is a higher level of risk accepted than private equity. The private equity firms usually pick more sure bets than this.