Internet scams used to be like the villain in a low-budget children's show. You could spot the bad guy a mile away, and you were probably more amused than afraid. Remember the Nigerian prince who insisted you were due an inheritance, if you'd send in your personal information? Or the email declaring you'd won a giant lottery? All you had to do was send in your bank account numbers, and you'd get your prize.How quaint. Even cute, almost.But today's scammers have grown up and are decidedly scary. Which is why it's smart to stay familiar with the latest and not so greatest in cyber scams. How might you get ripped off in the near future? Lots of ways, if you aren't on guard.[See: 9 Scary Things Consumers Do With Their Money.]Be wary of any financial institution that asks you to take a selfie – with your ID. That's a malware trick that McAfee technicians have discovered in the last few months, according to Gary Davis, chief consumer security evangelist at Intel Security, a Santa Clara, California-based company that makes McAfee computer security software. He says a type of malware (software, used for evil purposes) has surfaced in Hong Kong and Singapore, and attempts to trick computer users into taking a selfie with a personal ID, which obviously would be the worst sort of personal information for a criminal to have."I'm in awe every time I see how creative and clever the bad guys are," Davis says.And, sure, you might think that this sounds on par with the Nigerian prince and lottery scam (Who would fall for this?), but Davis says this malware, once you've managed to download it, will lay dormant and not ask you for financial information until you do some online banking and are probably expecting to be asked some questions. One would like to think that most consumers would stop and reflect –and not pose for a selfie – with their driver's license (even if they do think their bank is asking them to snap the shot), but it's easy to imagine that many consumers would answer the more routine questions, like, "What's your mother's maiden name?"[See: 10 Warning Signs of Identity Theft.]Be skeptical of USB sticks. You can use these data storage devices, also called USB flash drives, to back up information but also to download software, a PowerPoint presentation, a computer game, recipes or almost anything you can imagine. And while most USB sticks or flash drives are perfectly safe to use, Davis says that Intel Security's technicians have been finding ransomware being transmitted through USB sticks.Ransomware is a type of malware that, once it's in your computer, will shut everything down. Suddenly you won't be able to access any of your files until you pay a cash ransom to the hacker who sent you the ransomware. Ransomware is on the rise, industry experts say, affecting not only individuals but school districts, hospitals and businesses. Meanwhile, think about all the times you've stuck a USB stick into your computer. Many people use these frequently without second thought."I can't count the number of conferences I've been to, where they're just handing out USB sticks … If you don't know the history of the USB stick, don't connect it to your drive," Davis advises.[See: 10 Money Leaks to Shut Down Now.]Be aware of Google Voice scams. Jayne Hitchcock – whose pen name is J.A. Hitchcock – had this particular scam attempted on her very recently. Hitchcock, a Maine-based author of the upcoming book, "Cyberbullying & The Wild, Wild Web: What Everyone Needs To Know," put her phone number on a Craigslist ad she posted in hopes of selling a bunch of books she no longer wanted. Not long after the ad went up, she received a text from a phone number she didn't recognize. She Googled the number and found nothing bad, so she replied."Then I got a call from a 202 Washington, D.C., area code that had a prerecorded female voice saying it was Google Voice and to input the two-digit code I received," Hitchcock says. "I then got a text from this person telling me to input '50.'"That made Hitchcock's something's wrong antenna go up, so she wrote back and said to check out her website, netcrimes.net; if he wasn't a scammer, she wrote, she invited him to call her from the local number he was texting from."I never heard from him again," Hitchcock says.So what was the problem? What would have been so bad if Hitchcock had typed in the two-digit code?"What they do is steal your phone number, essentially using it as a forwarding number for them to scam other people," Hitchcock says. It can be such a hassle to get your phone number back that some people don't even bother and instead cancel it, she adds.Steer clear of emails with links to YouTube.com. Nobody needs to be told that YouTube is a massively popular website, and con artists are leveraging its all-ages appeal, according to Rich Drees, a Miami-based entrepreneur who runs a social media marketing company.Drees says crooks will sometimes send consumers emails with a link that leads to a YouTube video. Or, rather, it looks like it's going to lead to a YouTube video."Instead, you're taken to a page that looks exactly like the real thing, but you're asked to sign on, thus enabling the scammer to hijack your account," Drees says.One major hint that you have a problem, Drees says: "Check the address bar carefully when you arrive to ensure that it contains YouTube.com. If it contains another word before that, like Anotherword-YouTube.com, it's not YouTube. "These cyber tactics are only going to get worse, according to Davis."It used to be that proximity mattered," he says. "If you were a thief, you had to go to the bank, and it was high-risk, low reward. But that's why cyber crime is so attractive. It isn't dangerous for the bad guys, and it's difficult for them to be caught, especially if it's somebody who lives in another country. It's a growth market." 10 Ways to Protect Yourself From Online Fraud.
Amazon staying strong.
Despite some broad market weakness, Amazon.com (ticker: AMZN) is once again within a stone’s throw of a $1 trillion market cap after reporting blowout fourth-quarter numbers. Amazon's stock price gained more than 7% on better-than-expected sales and cloud revenue. Earnings per share were particularly strong, exceeding consensus analyst estimates by more than 60%. Amazon’s big quarter has reassured the market that the company is still making the right calls on investing in its business. Even at nearly a $1 trillion market cap, Bank of America analyst Justin Post recently listed 10 things he still loves about AMZN stock.
Online retail and cloud businesses are still young.
Amazon’s online retail business has been around for decades. The company's cloud business known as Amazon Web Services, or AWS, isn’t brand new either. But while both these businesses are large and well-established at this point, Post says they are both still relatively early in their growth stages. Global e-commerce gross merchandise volume was $3.2 trillion in 2019, up 19% compared with 2018. Post is projecting another 18.5% growth in 2020. Post projects global e-commerce penetration can more than double from 11% today to more than 25% over time. He estimates AWS cloud revenue could also grow to $57 billion by 2021.
Amazon’s customers are loyal.
A recent Bank of America survey found 58% of online shoppers start their search on Amazon compared with just 25% that start with Google, which is under the parent company Alphabet (GOOG, GOOGL). In addition, Post found 34% more respondents indicated they are using Amazon’s platform more today than a year ago compared with respondents who said they are using it less. That increased-to-decreased usage ratio is better than any other company included in the survey and demonstrates Amazon's positive momentum. Finally, 30% of shoppers surveyed said they complete between 76% and 100% of all online shopping on Amazon, up from 26% a year ago.
Prime usage is rising.
Not only are Amazon’s Prime membership numbers and membership revenue growing at an impressive rate, Bank of America found 75% of current Prime users say they are “unlikely” or “very unlikely” to cancel their membership. Only 6% of Prime members said they are likely to cancel in the next year, down from 8% a year ago. Prime members spend an average of $1,704 per year on Amazon compared with $491 annually for nonmembers. Finally, 24% of Prime members intend to spend more on Amazon in 2020 compared with 7% who plan to spend less.
Grocery is a growth catalyst.
Post says the grocery market is worth $750 billion annually, but its online penetration rate is currently just 4%. Amazon recently eliminated its $15 per month Amazon Fresh fee for Prime members in select cities. The fee cut comes as Amazon has also been expanding its one- and two-hour Fresh delivery services. It also plans to launch a new grocery store in Los Angeles in 2020. Post says Amazon has a significant opportunity to take advantage of its massive customer base, its established supply chain and its physical infrastructure to ramp up grocery delivery over time.
Free one-day delivery.
One of the biggest reasons for the positive market reaction to Amazon’s fourth-quarter earnings is that the company proved that its aggressive investments in free one-day delivery will not weigh down profits. Post projects more than 50% of the total items sold on Amazon could be eligible for the one-day delivery service by the end of 2020. While Walmart (WMT) and other competitors are attempting to keep pace with Amazon on one-day shipping, Post says Amazon’s wide selection of offerings, particularly among lower-cost items, differentiates AMZN from its competition. Post says Amazon will eventually optimize one-day eligible items to maximize margins.
AWS is the cloud leader.
Post says Amazon’s AWS cloud business is the single best large-scale growth opportunity in the tech sector. He estimates AWS has a $300 billion addressable market. Post says Microsoft Corp. (MSFT) is a legitimate cloud competition for AWS, but Amazon’s dominant market share in the space gives it a significant first-mover advantage. In fact, Post projects $45 billion in AWS revenue in 2020, more than the revenue of Microsoft’s Azure and Google Cloud combined. As the high-margin revenue for AWS grows, it should beef up the company’s overall margins in time.
Retail margins rebound.
One-day shipping investments have eaten into Amazon’s non-AWS margins, and Post says that trend will likely continue in the first half of 2020. In the fourth quarter, Amazon’s North American profit margins dropped from 5.1% to 3.5%. But by the second half of the year, Post says these investments should begin to normalize while Amazon’s high-margin AWS and advertising businesses add $2.5 billion and $2.2 billion in operating profits in 2020, respectively. Not only will this boost in margins improve earnings, but it will also give Amazon financial flexibility to potentially invest in its next growth initiatives.
Revenue trends are positive.
In addition to its high-growth AWS business, Post says Amazon has been consistently adding revenue from its other businesses. From 2011 to 2016, Amazon added between $10 billion and $20 billion in incremental non-AWS revenue per year. Even without including Whole Foods numbers, that incremental revenue gain jumped to $30 billion in 2017 and $33 billion in 2018. Post is projecting another $37 billion in non-AWS incremental revenue in 2020, but he says there is upside to that estimate given the relatively strong growth in holiday season e-commerce sales trends in recent years, including 18% growth in 2019.
Amazon is increasing fulfillment capabilities.
Post says Amazon’s heavy investments in building up its fulfillment infrastructure have created several opportunities for the company in the years ahead. He says last-mile delivery capabilities should boost sales of underpenetrated categories such as beauty, personal care, pet care, food and other home goods. Amazon is focusing on improving its shipping service. It is also improving its customers’ shopping experience and reducing costs by scaling and optimizing its business. According to logistics consultant MWPVL International, Amazon has nearly quadrupled its total number of distribution facilities since 2015. Post estimates Amazon’s distribution infrastructure grew by 34% in 2019.
Expansion of luxury retail items.
Amazon has had lackluster results in previous attempts to break into luxury fashion, but the company is now reportedly working with at least 12 luxury brands in developing a new platform dedicated exclusively to luxury retail items. Post says the luxury platform will be a separate section of Amazon.com and will allow retailers to have more control over the style and layout of their sites to maintain and cultivate their brand images. Chinese e-commerce giant Alibaba Group Holding (BABA) is generating success with its Tmall Luxury Pavilion, BABA's dedicated site for high-end brands. Post says luxury retail is a “significant category” for Amazon to tap.
10 great reasons to buy Amazon stock:
Online retail and cloud businesses are still young.Amazon’s customers are loyal.Prime usage is rising.Grocery is a growth catalyst.Free one-day delivery.AWS is the cloud leader.Retail margins rebound.Revenue trends are positive.Amazon is increasing fulfillment capabilities.Expansion of luxury retail items.
Amazon staying strong.
Despite some broad market weakness, Amazon.com (ticker: AMZN) is once again within a stone’s throw of a $1 trillion market cap after reporting blowout fourth-quarter numbers. Amazon's stock price gained more than 7% on better-than-expected sales and cloud revenue. Earnings per share were particularly strong, exceeding consensus analyst estimates by more than 60%. Amazon’s big quarter has reassured the market that the company is still making the right calls on investing in its business. Even at nearly a $1 trillion market cap, Bank of America analyst Justin Post recently listed 10 things he still loves about AMZN stock.
Online retail and cloud businesses are still young.
Amazon’s online retail business has been around for decades. The company's cloud business known as Amazon Web Services, or AWS, isn’t brand new either. But while both these businesses are large and well-established at this point, Post says they are both still relatively early in their growth stages. Global e-commerce gross merchandise volume was $3.2 trillion in 2019, up 19% compared with 2018. Post is projecting another 18.5% growth in 2020. Post projects global e-commerce penetration can more than double from 11% today to more than 25% over time. He estimates AWS cloud revenue could also grow to $57 billion by 2021.
Amazon’s customers are loyal.
A recent Bank of America survey found 58% of online shoppers start their search on Amazon compared with just 25% that start with Google, which is under the parent company Alphabet (GOOG, GOOGL). In addition, Post found 34% more respondents indicated they are using Amazon’s platform more today than a year ago compared with respondents who said they are using it less. That increased-to-decreased usage ratio is better than any other company included in the survey and demonstrates Amazon's positive momentum. Finally, 30% of shoppers surveyed said they complete between 76% and 100% of all online shopping on Amazon, up from 26% a year ago.
Prime usage is rising.
Not only are Amazon’s Prime membership numbers and membership revenue growing at an impressive rate, Bank of America found 75% of current Prime users say they are “unlikely” or “very unlikely” to cancel their membership. Only 6% of Prime members said they are likely to cancel in the next year, down from 8% a year ago. Prime members spend an average of $1,704 per year on Amazon compared with $491 annually for nonmembers. Finally, 24% of Prime members intend to spend more on Amazon in 2020 compared with 7% who plan to spend less.
Grocery is a growth catalyst.
Post says the grocery market is worth $750 billion annually, but its online penetration rate is currently just 4%. Amazon recently eliminated its $15 per month Amazon Fresh fee for Prime members in select cities. The fee cut comes as Amazon has also been expanding its one- and two-hour Fresh delivery services. It also plans to launch a new grocery store in Los Angeles in 2020. Post says Amazon has a significant opportunity to take advantage of its massive customer base, its established supply chain and its physical infrastructure to ramp up grocery delivery over time.
Free one-day delivery.
One of the biggest reasons for the positive market reaction to Amazon’s fourth-quarter earnings is that the company proved that its aggressive investments in free one-day delivery will not weigh down profits. Post projects more than 50% of the total items sold on Amazon could be eligible for the one-day delivery service by the end of 2020. While Walmart (WMT) and other competitors are attempting to keep pace with Amazon on one-day shipping, Post says Amazon’s wide selection of offerings, particularly among lower-cost items, differentiates AMZN from its competition. Post says Amazon will eventually optimize one-day eligible items to maximize margins.
AWS is the cloud leader.
Post says Amazon’s AWS cloud business is the single best large-scale growth opportunity in the tech sector. He estimates AWS has a $300 billion addressable market. Post says Microsoft Corp. (MSFT) is a legitimate cloud competition for AWS, but Amazon’s dominant market share in the space gives it a significant first-mover advantage. In fact, Post projects $45 billion in AWS revenue in 2020, more than the revenue of Microsoft’s Azure and Google Cloud combined. As the high-margin revenue for AWS grows, it should beef up the company’s overall margins in time.
Retail margins rebound.
One-day shipping investments have eaten into Amazon’s non-AWS margins, and Post says that trend will likely continue in the first half of 2020. In the fourth quarter, Amazon’s North American profit margins dropped from 5.1% to 3.5%. But by the second half of the year, Post says these investments should begin to normalize while Amazon’s high-margin AWS and advertising businesses add $2.5 billion and $2.2 billion in operating profits in 2020, respectively. Not only will this boost in margins improve earnings, but it will also give Amazon financial flexibility to potentially invest in its next growth initiatives.
Revenue trends are positive.
In addition to its high-growth AWS business, Post says Amazon has been consistently adding revenue from its other businesses. From 2011 to 2016, Amazon added between $10 billion and $20 billion in incremental non-AWS revenue per year. Even without including Whole Foods numbers, that incremental revenue gain jumped to $30 billion in 2017 and $33 billion in 2018. Post is projecting another $37 billion in non-AWS incremental revenue in 2020, but he says there is upside to that estimate given the relatively strong growth in holiday season e-commerce sales trends in recent years, including 18% growth in 2019.
Amazon is increasing fulfillment capabilities.
Post says Amazon’s heavy investments in building up its fulfillment infrastructure have created several opportunities for the company in the years ahead. He says last-mile delivery capabilities should boost sales of underpenetrated categories such as beauty, personal care, pet care, food and other home goods. Amazon is focusing on improving its shipping service. It is also improving its customers’ shopping experience and reducing costs by scaling and optimizing its business. According to logistics consultant MWPVL International, Amazon has nearly quadrupled its total number of distribution facilities since 2015. Post estimates Amazon’s distribution infrastructure grew by 34% in 2019.
Expansion of luxury retail items.
Amazon has had lackluster results in previous attempts to break into luxury fashion, but the company is now reportedly working with at least 12 luxury brands in developing a new platform dedicated exclusively to luxury retail items. Post says the luxury platform will be a separate section of Amazon.com and will allow retailers to have more control over the style and layout of their sites to maintain and cultivate their brand images. Chinese e-commerce giant Alibaba Group Holding (BABA) is generating success with its Tmall Luxury Pavilion, BABA's dedicated site for high-end brands. Post says luxury retail is a “significant category” for Amazon to tap.
10 great reasons to buy Amazon stock:
Online retail and cloud businesses are still young.Amazon’s customers are loyal.Prime usage is rising.Grocery is a growth catalyst.Free one-day delivery.AWS is the cloud leader.Retail margins rebound.Revenue trends are positive.Amazon is increasing fulfillment capabilities.Expansion of luxury retail items.