- Loup Venture sees Amazon Go (NASDAQ:AMZN) as a long-term bet by the Seattle e-commerce giant due to the heavy tech investments being made at each store.
- The firm notes that hundreds of high-tech cameras, sensors and computing resources add to the heavy costs of actually acquiring property and constructing a physical convenience stores.
- Still, the positioning of Amazon Go in more affluent metropolitan areas is seen as a winning brick-and-mortar investment down the road as the consumer convenience factor, data gathering and synergy opporunities multiply.
- "The Amazon Go buildout will be costly, but Amazon has shown time and again that it’s willing to invest significantly in risky, long-term bets. Amazon Web Services was unprofitable for years and now represents over half of all the company operating income (as of the Sept. 2018 quarter). Even at near a $1 trillion valuation, Amazon continues to make decisions like a day-1 company," notes the firm.
- On a broader scale, Loup Ventures sees the future of retail as duopoly between Amazon and Walmart (NYSE:WMT), with the two accounting for even more market share than they currently gobble up.
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Original article