According to Jason Del Rey of All Things Digital, Amazon.com, Inc. (NASDAQ:AMZN) is doing the right thing in exercising caution with the roll out of their grocery business, private labels, and determinations as to what to do next.
Questions abound as to what territory the Seattle, WA company will attempt to tread upon next.
As Yahoo! Finance reported, for Amazon.com, Inc. (NASDAQ:AMZN)’s “third quarter earnings last month the stock spiked as the company beat Wall Street expectations on revenue. It was just the latest in a series of moves higher that together have the stock up more than 40% in 2013.”
With that time of an uptick the company can afford to be cautious, taking time to develop a home-run initiative, rather than desperately clutching at straws.
Recently speculation has swirled surrounding job postings on Amazon.com, Inc. (NASDAQ:AMZN)’s website. As Blair Hanley Frank of GeekWire writes:
Judging by some new job openings Amazon posted recently, you may be able to get Amazon brand flour or baby formula at some point in the future.
The job postings, first spotted by AllThingsD, include openings for a “Senior Product Manager, Private Label Consumables” and two “Senior Consumables Private Label Sourcing Manager” positions at Amazon’s Seattle campus.
The existing grocery delivery business, AmazonFresh, has expanded to Los Angeles. The service is not available in some neighborhoods of that city and Seattle. However, noting the failure of other similar outlets who attempted to expand too quickly Del Rey indicated that the company is proceeding with great caution.
Del Rey also believes that Amazon.com, Inc. (NASDAQ:AMZN) intends to seek out products where, at lower price points, quality suffers. And rather than listing such products on their site, the company could produce private label alternatives, cut out the middle man, and sell the items on the website.
Whether the company chooses to go into any of the aforementioned directions, it’s clear that investors have confidence that whatever Amazon does next will deliver profits.