SoFi Will be Everywhere Like Amazon — Galileo
On May 15, 1997, Amazon went public. It was valued at $438 million. Today, the company is worth almost two trillion dollars.
Today, thanks to its technology platform, Amazon is everywhere. Like Amazon, SoFi will be everywhere …
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Amazon and SoFi are industry defining companies. Both are transformational organizations led by world-class teams. One is the e-commerce giant, and the other is the epitome of financial tech.
The differences between these two market leaders are enumerable, but the few similarities are crucial to understanding the future of SoFi and its stock.
In the mid 2000s, Amazon was emerging as the leading one-stop e-commerce shop. They had gone far beyond their origins of selling books to become the everything store.
Then they created a suite of services that changed everything. These services provide the building blocks for tech companies to solve their fundamental technological problems.
They called it Amazon Web Services.
Amazon Web Services
Over the decade that followed, AWS has become the industry standard in web cloud services. Amazon’s growing box of services is the lifeblood of many top private and publicly traded companies, including Netflix, Twitch, Facebook, LinkedIn, and BBC to name a few.
In fact, AWS is used by startups and Fortune 50 companies alike. And, to the detriment of potential competitors, Amazon’s services get harder to escape with every new customer as the social proof compounds its popularity.
Today, AWS contributes about $45B of Amazon’s $386B revenues. That’s 12% of all revenues. Even more critical is the recurring nature of these revenues; Amazon builds once and gets paid for its services infinitely.
Since launching AWS, among other reasons, Amazon has gone on to dominate its primary market as well as the cloud technology services market.