The comment comes from the FBR Capital Markets analyst for the technology sector as Amazon.com, Inc. (NASDAQ:AMZN) readies to report its latest quarterly performance on Thursday, April 23rd.
“I think more transparency at this point – not just for Amazon [but] for a lot of these tech companies – is the step in the right direction. The big question too is in terms of enterprise – how Amazon plans to go forward. How much of a competitive threat they are,” Ives tells Tausche.
Amazon.com, Inc. (NASDAQ:AMZN), Ive implies, needs to show investors how much it can be a formidable rival in the cloud sector in which its Amazon Web Services division is a key player.
Ives notes that the market in technology continues to be skewed towards spending in these types of technology or the area which cloud, cyber security and big data are key products. Furthermore, he says that information technology spending is still “soft” in comparison to past periods.
Earlier in the discussion as the panel was discussing International Business Machines Corp. (NYSE:IBM), Ives suggested that enterprise spending is foreseen to continue to be “cautious at best”. He said, however, that Big Blue also has issues inside of its business aside from the ones that outside factors bring in.
Ives says that he expects traditional technology companies like International Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT) and Cisco Systems, Inc. (NASDAQ:CSCO) will be hit this quarter by a “bipolar” spending environment.
Unlike Amazon.com, Inc. (NASDAQ:AMZN), however, which Ives appears to not be sure in terms of performance in the past quarter, Apple Inc. (NASDAQ:AAPL), he says, continues to be the main gainer in the consumer side.
Furthermore, Ives says that as cloud becomes a more important industry, he believes that there will be significant activity in mergers and acquisitions as companies look to become key players in this industry. That is particularly true, he adds, for companies with a lot of cash on hand which can utilize their war chest to beef up their efforts in the cloud industry.
Ken Griffin’s Citadel Investment Group owned about 1.16 million Amazon.com, Inc. (NASDAQ:AMZN) by the end of the last quarter of last year.
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