Amazon Seeks Growth With New Alexa Devices

September 19, 2018
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The second most valuable publicly traded company in the world is not resting as it aims to top Apple’s staggering growth. Amazon (NASDAQ: AMZN) has a massively diversified business with stakes in online retail, physical retail, healthcare, and technology. The tech side of the business has experienced continued growth in recent years, thanks in large part to Amazon’s home Alexa devices.

The voice assistant devices have enabled the company to embed itself in the American lifestyle, providing everything from home automation to natural voice searches and online shopping.

Amazon continues to push for a larger stake in the tech industry. It has now been revealed that there are several new Alexa devices in the pipeline that could allow the company to expand its footprint.

New Alexa Devices Focus on Connected Living Through IoT

The Internet of Things is the name given to recent technologies that allow for internet connected devices in homes, public places, offices, and vehicles. Also known as IoT, this branch of technology allows for consumer convenience as well as more opportunities for companies like Amazon to create revenue.

Alexa devices that are in development include a home AV amplifier, subwoofer, receiver, microwave oven, and an in-car entertainment device.

The release of more Alexa-enabled devices will mean that Amazon can get more home penetration for its sales platform. By making devices affordable, the company has potential for complete ubiquity in the modern home. The development of a voice controlled, and internet connected microwave oven is particularly notable. It marks Amazon’s first entry into home appliances. This is a market traditionally dominated by companies like Samsung and LG.

Investors don’t need to be fully engrossed in the latest technological developments to understand why more Amazon Alexa devices are important for business. The company is not intending to make huge profits from its voice-controlled devices, but they are instead gateways to Amazon online services such as the Amazon.com shop, as well as music and video streaming services.

Essentially, more connected devices in the home could directly drive sales through Amazon’s established and emerging platforms.

Analysts Still Recommend BUY on Amazon Stock

Amazon can contribute to a strong portfolio based on growth stocks. The share price has grown 10.91% in the last three months, 65.98% in the year to date, and 99.45% in the last twelve months.

Continued revenue gains and strong future predictions are driving investor confidence. Business expansion (including diversification into healthcare) as well as the prospect of new Alexa devices are also providing investors with plenty to look forward to.

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