Alexa could be Amazon’s next big winner
Amazon makes most of its money from being an easy place to shop on the Web and from its role as an internet backbone. Soon, its voice assistant Alexa may also generate billions in sales — but users still need to be careful what they say to it.
RBC Capital Markets analyst Mark Mahaney thinks Alexa could be the next big thing for Amazon, potentially generating $10 billion in revenue by as soon as 2020.
“It is very early days so while we see significant opportunity from the proliferation of Alexa, the financial impact also carries significant un certainty,” Mahaney wrote in an investor note. “Nevertheless, we see the potential financial tailwind as at least three-fold – 1) Device Sales; 2) Incremental Voice Driven Shopping Sales & 3) Platform Revenues.”