Amazon has something up its sleeve that may lead to incredible gains for the company. Recently, a story came out that the company will be launching a streaming music service. Today, we'll talk about Amazon's plans, what it could mean for the stock, and how binary options traders should react to the news.
Amazon Is Said To Be Launching A Streaming Music Service
There's a big story surrounding Amazon at the moment, and it's revolving around the streaming music industry. At this point, Apple, Google, Pandora, Spotify, and many more have their hands in the industry, and it has proven to be an incredibly profitable one.
However, there is something to be said here about competition. While Amazon does have an incredibly strong brand, there's already quite a few major players in the game. Some experts argue that Amazon will have a hard time breaking through into the industry and making a name for its own streaming music service.
Nonetheless, for every nay sayer out there, there are plenty of people that say that Amazon is going to be overwhelmingly successful in the industry. The bulls on the story say that Amazon has built an incredibly strong brand and that whatever the company does will likely gain traction. Some even believe that it's possible that Amazon will put Spotify out of business.
What We Can Expect To See From Amazon Moving Forward
Moving forward, I have an overwhelmingly bullish opinion with regard to Amazon. Here's why I see the stock climbing from here…
Streaming Music – First and foremost, I love the idea of streaming music services from Amazon. I am on the bullish side of the argument there. At the end of the day, while there is plenty of competition in the industry, Amazon has created an incredible brand and will likely have no problem building a strong membership base around the service.
Amazon Prime – Another reason that I maintain a bullish position on Amazon is the fact that Amazon Prime services are overwhelmingly profitable. In the beginning, I never thought that I would be saying this, and on a direct level, chances are that Prime leads to a slight loss. However, what the company loses on the prime service cost when it comes to free 2 day shipping, it far more than makes up for in overall sales. After all, Prime members generally spend more than $800 a year using Amazon's services. This generates tons of revenue for the company.
Growing Infrastructure – With tons of fulfillment centers already out there, and a great infrastructure when it comes to shipping, Amazon has made it so that consumers get their products faster. This creates a higher demand and solidifies the company's leadership in the industry. However, they are not done yet. Amazon is setting up Uber like services for shipments, and focusing on licensing major shipping companies at deep discounts. The further growth in infrastructure will lead to a better user experience and more sales.
How Binary Options Traders Can Take Advantage Of The Trends
Moving forward, we're likely to see more gains on Amazon. So, binary options traders should simply be watching or strong call option opportunities. This will allow you to follow the trends up to the profits.
What Do You Think?
Where do you think Amazon is headed and why? Let us know your opinion in the comments below!
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