Chief Executive Officer of Amazon.com Inc. Jeff Bezos said the ecommerce giant has exceeded 100 million paid Prime subscribers and will continue to invest to meet "ever-increasing" customer expectations.
Milestone in his annual shareholder letter, released Wednesday. The letter is the founder's opportunity to underscore his long-term strategy for investors to bolster his confidence as he continues to raise Amazon's money for international expansion, building a presence and inventing new products such as Echo Speakers and the Alexa voice-activated digital assistant
Bezos cited Amazon's consistently high score on independent surveys, including the US Customer Satisfaction Index, as evidence that the company continues to see new ways to satisfy customers and give them new things that they did not want to see
"You can not rest on your laurels in this world," he wrote. "Customers will not have it."
The CEO also said that in 201
Amazon shares rose 1.5 percent after the letter was published.
Investors are not being drawn to Amazon for its profits. The company's margins have dropped more than 2 percent since 2011. Instead, they are investing in Bezos' ability to open up new markets and find new revenue streams that have risen 31 percent to $ 178 billion over the past year. The Amazon stock rose nearly 70 percent last year, nearly five times the standard & Poor's 500 index.
Amazon has a big lead in cloud computing, a profitable and fast growing market. It is building an advertising business to take advantage of its web traffic. And the Seattle-based company is committed to making the voice-driven Alexa platform the next wave of human-device interaction, complementing the computer mouse and touch-screen interfaces.
The company is also facing new threats. US President Donald Trump has complained that Amazon is not paying its fair share of taxes, claiming that the company is hurting traditional retailers, and says it gets a love letter from the post office – a complaint that rates Amazon's shipping costs Driving height could lead to new postal package prices. And Amazon is in expensive price war with Walmart Inc. as the two retailers contend for supremacy over the $ 800 billion grocery store.
To uphold investors' beliefs, Bezos always uses his 1997 shareholder letter to remind them of his ability to foretell how the Internet would change the way people shop. He also tells anecdotes about driving to the post office in his Chevy Blazer and dreaming of someday owning a forklift truck to remember how far the company has progressed.
As the richest man in the world, Bezos & # 39; ; Strategy and Outlook have developed a cults-like followers similar to those of Warren Buffett, whose annual letters to investors at Berkshire Hathaway Inc. are a must-read for those who want to understand the economy and Buffett's investment strategy. Buffett now ranks third on the Bloomberg Billionaire's Index, behind Bezo's and Microsoft Corp. founder Bill Gates.