If you’re not already paying attention to Amazon (NASDAQ: AMZN), you should be. Not only is Amazon one the most major e-commerce companies on the market (bringing in $72.38 billion in its fourth quarter in 2018), the company is now making its way into the Wi-Fi business.
Amazon announced it is set to buy the Wi-Fi networking company eero.
Never heard of eero? Well, it manufactures Wi-Fi networking devices, more specifically, mesh Wi-Fi. This is a system of multiple router devices that you would put all over your house or office to provide more coverage. Each device works with one another off of one single primary router. Basically, they’re Wi-Fi extenders that boost the signal in an area.
Google already has something similar with its Google Wi-Fi, so it seems fitting that Amazon would go after the same thing.
What does this mean for Amazon though? The company has a few options. It can own eero and let it run as it normally does. Despite layoffs in 2018, the company has a pretty healthy track record.
Amazon could integrate eero into its own products. The e-commerce company already has devices that rely on an internet connection (Amazon Echo and Fire TV). So, this partnership seems like a natural fit to help with boosting the internet connection the devices rely on.
eero also offers cybersecurity which would be a good match for Amazon’s devices to provide more protection and safety for its users.
There has been concern already over Amazon collecting data from its users, especially those who use Amazon’s Alexa services. Now, by adding eero to the team, many more are worried over what Amazon could now do. Although eero states that privacy is something they take seriously and never tracked customers’ internet activity, and they ensure that policy will not change, customers still question this commitment to privacy.
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Amazon worked its way to the stop, being one of (and at one point making it to the top) the most valuable companies on the market. By making moves with their voice assistant devices, introducing their own streaming services, and buying out a company that lets you watch your front door from anywhere, all of these moves have pushed Amazon to be a company to watch out for.
Now, add in the acquisition of eero, that’s just another excellent business move to add to the list.
Questions remain as to what Amazon will really do with eero, only time will tell. However, it’s hard to argue that this wasn’t a smart move on Amazon’s part.
As the company continues to battle it out with other major public corporations like Microsoft, Google, and Apple, this move opens up a whole new area for Amazon to peruse, which could deal a huge blow to its competitors.
What about Amazon’s stock? Is it something to watch out for?
Amazon doesn’t want to control every industry it enters. Amazon wants to dominate it. We saw that with the introduction of Alexa, and we’ll likely see it with the introduction of eero (which provides more versatility than the Google Wi-Fi). Because of this dominating attitude, investors feel more confident going with Amazon, and history seems to prove that.
The company doesn’t stay within its shell. Instead, Amazon takes the business world by storm to disrupt the norm. With that risk comes with great rewards, and the stock follows this path as well.
No matter what happens to Amazon, it seems to be that its stock continues to perform at a high level, making it a worthwhile investment. With the addition of eero, it only seems like the stock will continue to perform.