Still not convinced duplication occurs?
Well, have you considered Microsoft Corporation (NASDAQ:MSFT)’s fierce battle against Amazon?
As seen via its financial and media reports, Amazon.com, Inc. (NASDAQ:AMZN) sacrifices profit for growth. The below data further indicates the extent to which Amazon.com, Inc. (NASDAQ:AMZN) tries to increase its revenue and market share, even if it comes at the expense of profit, financing through debt, or not paying dividends.
| Amazon | 2012 | 2011 | 2010 | |
|---|---|---|---|---|
| Total Equity | $ 8,192,000 | $ 7,757,000 | $ 6,864,000 | |
| Long-Term Debt | $ 3,084,000 | $ 255,000 | $ – | |
| Net Proft Margin | 0% | 1.31% | 3.37% |
Interestingly, as a mature, dividend paying firm, Microsoft still competes with Amazon.com, Inc. (NASDAQ:AMZN), particularly Amazon Web Services (AWS). Microsoft Corporation (NASDAQ:MSFT)’s Azure cloud platform is currently snatching customers from Rackspace Hosting, Inc. (NYSE:RAX) while giving Amazon.com, Inc. (NASDAQ:AMZN) a run for its money.
For example, Microsoft Corporation (NASDAQ:MSFT) is matching Amazon.com, Inc. (NASDAQ:AMZN) Web Services’ prices. AWS earned $1.8 billion in revenue in 2012, but Microsoft Corporation (NASDAQ:MSFT) recently announced that Azure has surpassed the $1 billion revenue mark. Furthermore, over a six month period ending last month, Azure subscriptions skyrocketed 48%. I anticipate that these two mammoths will continue to earn revenue while wreaking havoc on the smaller firms in the industry…or acquiring them.
Another case and point example: Microsoft Corporation (NASDAQ:MSFT) is considering acquiring Barnes & Noble, Inc. (NYSE:BKS)’s Nook Media business segment for about $1 billion. Why would Microsoft buy a business that has not posted a profit in over three quarters?
Think Google. Microsoft Corporation (NASDAQ:MSFT) is likely removing potential competition so that it can be better positioned. Or, it could actually plan to invest into the project, hoping to turn the Nook into its own Tablet platform.
Takeaway
With shield and spear in hand, technology giants are waging a long lasting, full-fledged war that will continue to have lasting repercussions and benefits.
But the question still remains: What is seen or recognized by these firms that is not conveyed to us?
Therein lies the key to victory.
The article Epic Battle Paves Way for Growth originally appeared on Fool.com is written by Brendan Marasco.
Brendan Marasco has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Google. The Motley Fool owns shares of Amazon.com, Google, and Microsoft. Brendan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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