Can Amazon.com, Inc. (AMZN) be Toppled?

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While Amazon.com, Inc. (NASDAQ:AMZN) keeps on pouring more and more money in fuelling its growth, some are concern that the e-retailing behemoth can lose ground in its core business. The company till now has managed to convince analysts that even though it’s not profitable, it’s paving the way to become hugely profitable in future by deploying money in new areas of growth. Amazon.com, Inc. (NASDAQ:AMZN)’s stock price is a testament to the kind of general optimism around the company, but some critics have started voicing their concern too. Kevin Roose, Business Writer for New York Magazine, discussed today on CNBC, what kind of competition can doom Amazon.com, Inc. (NASDAQ:AMZN).

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“[…] What could companies do to kill Amazon.com, Inc. (NASDAQ:AMZN) if they wanted to, what are the sort of weak points in the armor […] the most important are mobile, discovery and same day delivery,” Roose said.

Roose feels that instead of being an e-retailer, Amazon.com, Inc. (NASDAQ:AMZN) is more of a logistics company, implying that its strength lies in delivering goods quickly to customers. Roose insisted that even though there are ways to beat Amazon.com, Inc. (NASDAQ:AMZN) on its home turf, none of the methods to do so are easy. He enumerates the competitors that have tried to compete with Amazon.com, Inc. (NASDAQ:AMZN), but have failed badly at that.

Roose said that Google Inc (NASDAQ:GOOGL) as a company that has the necessary cash that it can deploy to seriously challenge Amazon.com, Inc. (NASDAQ:AMZN)’s core business. He mentioned that Google Inc (NASDAQ:GOOGL) has already started to build the required infrastructure for same day delivery and is also partnering with some leading brands in order to deliver goods to customer the same day that they place their orders.

As of June 30, 2014, Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN) and Stanley Druckenmiller‘s Duquesne Capital owns over 250 thousand shares in  Google Inc (NASDAQ:GOOGL).

Disclosure: None

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