We don't know whether msft's announcement is significant or not. It certainly is no surprise that there will be increasing competition.
Execution is what will count. AMZN has a huge head start as an internet retailing portal, and has a strong brand. It is executing very well. In 10 years folks will forget that the pc originally had widespread adoption as a business tool for word processors and worksheets. It or something approximating it, will be used for communication,entertainment,information/research, and e-tailing.
If amzn retains it's lead, what will it be worth in 10 years? That is what this is about. Now, "THE THING" is so grossly overpriced on current revenues that it is wise to trade it to protect your ass on the downside should it falter. Is it brilliant to get involved now? Probably not, but some of us have made a good living investing in "tech" stocks,(yes, it is a stretch to say this is a tech stock, but it is a company positioned to take advantage of new technologies),so this is what we know. If I managed the local water company maybe I'd invest in utilities. It is smart to stay in your circle of competence and where you have been right before.
I am reasonably certain that Amzn will stun the Christopher Byron's of the world. It will seem odd to many people that the real world success of Wal-Mart will not easily transfer to the web. They will be, they are being, slow to react because of the threat to their profits. Amzn will have a stronger foothold in a year. It will take a MSFT vs. NSCP performance by someone like Wal-Mart to knock Amzn down.
It is going to be exciting to see how it all plays out.
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