Amazon and Entrepreneurs are Experiencing a Windfall

Tech startups can take heart from Sun Microsystems co-founder Andy Bechtolsheim’s views on Amazon’s (NASDAQ:AMZN) web services division. According to Bechtolsheim, the service offers an unbeatable combination of low operating costs, scalability, and excellent open source development tools that are free or super cheap.

Consequently, it makes no sense for a startup to invest in infrastructure given that “you can now do more with fewer people and open source deserves all the credit here for creating and maintaining these tools.”

“That changes the model to allow for experimentation. Unlike ten years ago, when you had to raise tens of millions to get going, now you can do it on your credit card.” For people in the know, this means barriers to entry have practically dried up.

Bechtolsheim cites the example of Netflix (NASDAQ:NFLX) which uses Amazon for infrastructure: “here’s the leading, largest company in a field deciding it’s cheaper and more efficient to use a competitor for infrastructure rather than building its own.”

Not all is a windfall for companies and entrepreneurs. According to a UBS projection, Amazon’s (NASDAQ:AMZN) AWS might rake in over $1 billion in revenues this year. That’s great news for all the cloud infrastructure players.

Here’s how stocks in the sector are trading now:

  • Amazon.com Inc. (NASDAQ:AMZN): The shares recently traded at $215.56, up $4.77, or 2.26%. Its market capitalization is $98.03 billion. They have traded in a 52-week range of $156.77 to $246.71. Volume today was 2,454,045 shares versus a 3-month average volume of 6,688,830 shares. The company’s trailing P/E is 113.63, while trailing earnings are $1.90 per share. About the company: Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company’s products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Get the most recent company news and stock data here >>
  • Netflix, Inc. (NASDAQ:NFLX): The shares recently traded at $85.08, down $0.04, or 0.05%. Its market capitalization is $4.47 billion. They have traded in a 52-week range of $74.25 to $304.79. Volume today was 2,464,981 shares versus a 3-month average volume of 9,167,130 shares. The company’s trailing P/E is 19.34, while trailing earnings are $4.40 per share. About the company: Netflix Inc. is an online movie rental service. The Company ships DVDs with no due dates or late fees, directly to the subscriber’s address. Netflix also provides background information on DVD releases, including critic reviews, member reviews and ratings, and personalized movie recommendations. Get the most recent company news and stock data here >>
  • Rackspace Hosting, Inc (NYSE:RAX): The shares recently traded at $42.82, up $1.12, or 2.69%. Its market capitalization is $5.58 billion. They have traded in a 52-week range of $26.22 to $46.49. Volume today was 764,055 shares versus a 3-month average volume of 1,637,280 shares. The company’s trailing P/E is 91.11, while trailing earnings are $0.47 per share. About the company: Rackspace Hosting, Inc. delivers websites, web-based IT systems, and provides related services. Get the most recent company news and stock data here >>
  • Salesforce.com (NYSE:CRM): The shares recently traded at $130.29, up $2.48, or 1.94%. Its market capitalization is $17.65 billion. They have traded in a 52-week range of $109.21 to $160.12. Volume today was 602,666 shares versus a 3-month average volume of 3,056,280 shares. The company’s trailing P/E is 635.56, while trailing earnings are $0.21 per share. About the company: Salesforce.com, Inc. provides software on demand. The Company supplies a customer relationship management service to businesses worldwide providing a technology platform for customers and developers to build and run business applications. Clients use Salesforce.com to manage their customer, sales and operational data. Get the most recent company news and stock data here >>
  • International Business Machines Corp. (NYSE:IBM): The shares recently traded at $186.88, up $3.53, or 1.93%. Its market capitalization is $220.26 billion. They have traded in a 52-week range of $141.18 to $190.53. Volume today was 1,155,176 shares versus a 3-month average volume of 6,718,300 shares. The company’s trailing P/E is 14.73, while trailing earnings are $12.69 per share. The company pays a dividend of $3.00 per share for a dividend yield of 1.60%. About the company: International Business Machines Corporation provides computer solutions through the use of advanced information technology. The Company’s solutions include technologies, systems, products, services, software, and financing. IBM offers its products through its global sales and distribution organization, as well as through a variety of third party distributors and resellers. Get the most recent company news and stock data here >>
  • EMC Corporation (NYSE:EMC): The shares recently traded at $24.76, up $0.7, or 2.91%. Its market capitalization is $50.51 billion. They have traded in a 52-week range of $19.84 to $28.73. Volume today was 4,678,996 shares versus a 3-month average volume of 24,347,200 shares. The company’s trailing P/E is 24.64, while trailing earnings are $1.00 per share. About the company: EMC Corporation provides enterprise storage systems, software, networks, and services. The Company’s products store, retrieve, manage, protect, and share information from all major computing environments and mainframe platforms. EMC operates offices around the world. Get the most recent company news and stock data here >>
  • Microsoft Corporation (NASDAQ:MSFT): The shares recently traded at $27.03, up $0.75, or 2.85%. Its market capitalization is $227.38 billion. They have traded in a 52-week range of $23.65 to $29.46. Volume today was 14,597,223 shares versus a 3-month average volume of 59,026,300 shares. The company’s trailing P/E is 9.83, while trailing earnings are $2.75 per share. The company pays a dividend of $0.80 per share for a dividend yield of 3.10%. About the company: Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices. Get the most recent company news and stock data here >>

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