San Francisco — Amazon’s ventures far beyond online retail, from cloud computing to movie-making, are raising questions among corporate strategy experts about its focus. The Seattle-based company wowed Wall Street again last week with a 23% jump in sales, pushing its shares to an all-time high. But there are concerns that if blockbuster growth stops, investors may come to regard the company more like a conglomerate stock — worth less than the sum of its parts. "High growth covers a lot of sins," said Harry Kraemer, a partner at private equity firm Madison Dearborn Partners and a professor at Northwestern University’s Kellogg School of Management in Illinois. "Picture yourself running the company where one minute, we’re talking about how we’re going to operate air cargo, and the next minute, we’re going to talk about artificial intelligence. I don’t think it’s sustainable," he said. So far, analysts have baulked at the idea of calling Amazon a conglomerate because its businesses, alt...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.