Amazon.com, Inc. (AMZN): Jeff Bezos Trying To Stay Afloat Amidst Increased Competition

Jeff Bezos at the helm of Amazon.com, Inc. (NASDAQ:AMZN) is a man under siege as competition continues to mount more pressure on the company’s profit margins according to Forbes Media Chairman Steve Forbes. During an interview on Bloomberg, Forbes pointed that Bezos push to take over the world in terms of market share has resulted in more competition encroaching the company’s already established business

“He has got serious competition on all fronts, which is why when he had that disappointing last quarter he’s stock got hammered. His stock has had a terrible year because everybody is poaching on him there are no boundaries on him,” said Mr. Forbes.

Amazon has been making money from its operations but to the disappointment of investors the same has not trickled down in terms of returns as most of the funds have been diverted to other investment opportunities. The stock has struggled of late in terms of valuation especially with the entry of Alibaba into the U.S online marketplace where Amazon.com, Inc. (NASDAQ:AMZN) has remained a key player over the years.

Investors have already raised their uproar on the company reaching negative cash flow levels as the investment phase continues to take a toll on the company’s earnings. Bezos is already in an expansion drive in China as he seeks to offset Alibaba Group Holding Ltd (NYSE:BABA)’s dominance in the expansive online landscape. The company has also been expanding its product line with the addition of Fire TV and Fire phone.

“Yes he has done amazing things he will do amazing things but he has to prove again that he can turn around that cash flow situation and win and get new territory. Instead of being in a mode of fighting off competitors,” said Mr. Forbes.

Heading into the holiday season Amazon.com, Inc. (NASDAQ:AMZN) will look to be one of the biggest beneficiaries of the shopping frenzy backed by a massive infrastructure that can ensure timely deliveries even as late as December 24, 2014.

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