[Annotated] Amazon, the world's most remarkable firm, is just getting started

Amazon has the potential to meet the expectations of investors. But success will bring a big problem.

Amazon is an extraordinary company. The former bookseller accounts for^[각주:1] more than half of every new dollar spent online in America. It is the world's leading^[각주:2] provider of cloud computing. This year Amazon will probably spend twice as much on television as HBO, a cable channel. Its own-brand^[각주:3] physical products include batteries, almonds, suits and speakers linked to a virtual voice-activated^[각주:4] assistant^[각주:5] that can control, among other things, your lamps and sprinkler^[각주:6]. 

Yet Amazon's shareholders^[각주:7] are working on the premise that^[각주:8] it is just getting started. Since the beginning of 2015 its share price^[각주:9] has jumped by^[각주:10] 173%, seven times quicker than in the two previous years (and 12 times faster than the S&P 500 index). With a market capitalization^[각주:11] of some $400bn, it is the fifth-most-valuable firm in the world. Never before has a company been worth so much for so long while making so little money: 92% of its value is due to^[각주:12] profits expected after 2020.

That is because investors anticipate^[각주:13] both an extraordinary rise in revenue, from sales of $136bn last year to half a trillion^[각주:14] over the next decade, and a jump in^[각주:15] profits. The hopes invested in it imply that it will probably become more profitable than any other firm in America. Ground for scepticism does not come much more fertile than this: Amazon will have to grow faster than almost any big company in modern history to justify^[각주:16] its valuation. Can it possibly do so?

It is easy to tick off^[각주:17] some of the pitfalls^[각주:18]. Rivals will not stand still^[각주:19]. Microsoft has cloud-computing ambitions; Walmart already has revenues nudging^[각주:20] $500bn and is beefing up^[각주:21] online. If anything happened to Jeff Bezos, Amazon's founder and boss, the gap would be exceptionally hard to fill. But the striking^[각주:22] thing about the company is how much of a chance it has of achieving such unprecedented^[각주:23] goals.

A new sort of basket-case^[각주:24] 

This is largely due to the firm's unusual approach to two dimensions of corporate life^[각주:25]. The first of these is time. In an era when executives routinely whinge about^[각주:26] pressure to produce short-term results, Amazon is resolutely^[각주:27] focused on the distant horizon. Mr Bezos emphasizes continual^[각주:28] investment to propel^[각주:29] its two principal businesses, e-commerce and Amazon Web Services (AWS), its cloud-computing arm^[각주:30].

In e-commerce, the more shoppers Amazon lures^[각주:31], the more retailers and manufacturers want to sell their goods on Amazon. That gives Amazon more cash for new services - such as two-hour shipping and streaming video and music - which entice^[각주:32] more shoppers. Similarly, the more customers use AWS, the more Amazon can invest in new services, which attract more customers. A third virtuous circle^[각주:33] is starting to whirl around^[각주:34] Alexa, the firm's voice-activated assistant: as developers build services for Alexa, it becomes more useful to consumers, giving developers reason to create yet^[각주:35] more services.

So long as shareholders retain their faith in^[각주:36] this model, Amazon's heady^[각주:37] valuation resembles a self-fulfilling prophecy^[각주:38]. The company will be able to keep spending, and its spending will keep making it more powerful. Their faith is sustained by^[각주:39] Amazon's record. It has had its failures - its attempt to make a smartphone was a debacle^[각주:40]. But the business is starting to crank out cash^[각주:41]. Last year cashflow^[각주:42] (before investment) was $16bn, more than quadruple^[각주:43] the level five years ago.

If Amazon's approach to time-frames^[각주:44] is unusual, so too is^[각주:45] the sheer^[각주:46] breadth of^[각주:47] its activities. The company's list of current and possible competitors, as described in its annual filings^[각주:48], includes logistics firms^[각주:49], search engines, social networks, food manufacturers^[각주:50] and producers of "physical, digital and interactive media^[각주:51] of all types". A wingspan^[각주:52] this large is more reminiscent of^[각주:53] a conglomerate than a retailer, which makes Amazon's share price seem even more bloated^[각주:54]: stockmarkets^[각주:55] typically apply a "conglomerate discount" to^[각주:56] reflect^[각주:57] their inefficiencies^[각주:58]. 

Many of these services support Amazon's own expansion and that of other companies. The obvious example is AWS, which powers^[각주:59] Amazon's operations^[각주:60] as well as those of other firms. But Amazon also rents^[각주:61] warehouse space to other sellers^[각주:62]. It is building a $1.5bn air-freight^[각주:63] hub^[각주:64] in Kentucky. It is testing technology in stores to let consumers skip the cash register^[각주:65] altogether, and experimenting with^[각주:66] drone deliveries to the home. Such tools could presumably^[각주:67] serve other customers, too. Some think that Amazon could become a new kind of utility^[각주:68]: one that provides the infrastructure of commerce^[각주:69], from computing power to payments to logistics. 

A giant cannot hide

And here lies the real problem with the expectations surrounding Amazon. If it gets anywhere close to fulfilling them, it will attract the attention of regulators^[각주:70]. For now, Amazon is unlikely to trigger antitrust^[각주:71] action. It is not yet the biggest retailer in America, its most mature market. America's antitrust enforcers^[각주:72] look mainly at a firm's effect on consumers and pricing. Seen through^[각주:73] this lens, Amazon appears pristine^[각주:74]. Consumers applaud it; it is the most well-regarded^[각주:75] company in America, according to a Harris poll. (AWS is a boon to^[각주:76] startups, too.)

But as it grows, so will concerns about its power. Even on standard antitrust grounds, that may pose a problem^[각주:77]: if it makes as much money as investors hope, a rough calculation^[각주:78] suggests its earnings^[각주:79] could be worth the equivalent of 25% of the combined profits of listed Western retail and media firms. But regulators are also changing the way they think about technology. In Europe, Google stands accused of^[각주:80] using its clout^[각주:81] as a search engine to extend its power^[각주:82] to adjacent^[각주:83] businesses. The comparative^[각주:84] immunity from^[각주:85] legal liability^[각주:86] of digital platforms - for the posting of inflammatory^[각주:87] content on Facebook, say, or the vetting of^[각주:88] drivers on Uber - is being chipped away^[각주:89].

Amazon's business model^[각주:90] will also encourage regulators to think differently. Investors value Amazon's growth over profits; that makes predatory pricing^[각주:91] more tempting^[각주:92]. In future, firms could increasingly depend on^[각주:93] tools provided by their biggest rival. If Amazon does become a utility for^[각주:94] commerce, the calls will grow for it to be regulated as one. Shareholders are right to believe in Amazon's potential. But success will bring it into conflict with an even stronger beast: government.

1. account for ; ~을 해명하다[~의 이유가 되다] [본문으로]
2. leading ; [명사 앞에만 씀] 1. 가장 중요한, 선두적인 [본문으로]
3. own-brand ; [형용사] (상품이 매장) 자체 브랜드의 [본문으로]
4. voice-activated ; 음성 기동(起動)의 [본문으로]
5. assistant ; 1. 조수, 보조원 ;; 참고 PDA, personal assistant, teaching assistant [본문으로]
6. sprinkler ; 1. 살수[물 뿌리는] 장치, 스프링클러 [본문으로]
7. shareholder ; [명사] 주주(株主) [본문으로]
8. on the premise that ; ...이라는 것을 전제(前提)로 하여. [본문으로]
9. share price ; [명사] 주가 [본문으로]
10. jump ; 5. INCREASE | [자동사][V] 급증[급등]하다 [본문으로]
11. market capitalization ; (증권) 시가총액 ;; 발행주식(outstanding shares)의 시가총액* = market cap* 계산 : 총발행주식수 x 주당시가 [본문으로]
12. be due to ; ~할 예정이다 [본문으로]
13. anticipate ; 2. (대책을 세우기 위해) 예측하다 [본문으로]
14. half a trillion ; 5000억 [본문으로]
15. jump ; 3. INCREASE | ~ (in sth) (양・가격・가치의) 급증[급등] [본문으로]
16. justify ; 1. 옳음[타당함]을 보여 주다 [본문으로]
17. tick off ; 1 .to put a mark next to something on a list to show that it has been dealt with [본문으로]
18. pitfall ; [명사] (눈에 잘 안 띄는) 위험[곤란] [본문으로]
19. stand still ; 가만히 있다; 현상을 유지하다 [본문으로]
20. nudge ; 4. [타동사][VN] (특정한 수준에) 이르다[이르게 하다] [본문으로]
21. beef up ; [동사] 강화하다, 보강하다. 동의어 strengthen, increase ;; to make something bigger, stronger, more interesting, etc. [본문으로]
22. striking ; 1. 눈에 띄는, 두드러진, 현저한, 2. 굉장히 매력적인, 빼어난 [본문으로]
23. unprecedented ; [형용사] 전례 없는, 미증유의 [본문으로]
24. basket case ; (비격식) 1. 경제가 마비된 국가[조직] 2. 머리가 약간 이상한 사람 [본문으로]
25. corporate life ; 단체생활. [본문으로]
26. whinge ; [동사] [현재분사] whinge・ing 또는 whing・ing ~ (about sb/sth) (英 비격식 못마땅함) (짜증스럽게) 넋두리를 하다[징징거리다] [본문으로]
27. resolutely ; [부사] 단호히, 결연히 (cf. resoluteness 단호함, 결연함) [본문으로]
28. continual ; 2. 끊임없는, 부단한 [본문으로]
29. propel ; 2. [자,타동사][+ adv. / prep.] (사람을 특정한 방향・상황으로) 몰고 가다 [본문으로]
30. arm ; 6. OF ORGANIZATION | [주로 단수로] ~ (of sth) (조직의) 부문 [본문으로]
31. lure ; [타동사][VN + adv. / prep.] (못마땅함) 꾀다, 유혹하다 [본문으로]
32. entice ; ~ sb (into doing sth) (보통 무엇을 제공하며) 유도[유인]하다] [본문으로]
33. virtuous circle / cycle ; [명사] (격식) 선순환 [본문으로]
34. whirl around ; 빙빙돌다, 회전하다 [본문으로]
35. yet ; 6. ~ another/more, ~ again 거기에[그 위에] 또(수・양・횟수의 증가를 강조할 때) [본문으로]
36. retain faith in ; ~에 대한 신앙을 잃지 않는다. [본문으로]
37. heady ; [형용사] (주로 명사 앞에 씀) 자극적인, 흥분시키는; 의기양양하게 만드는 [본문으로]
38. self-fulfilling prophecy ; 자기 충족적[예언대로 성취되는] 예언. [본문으로]
39. sustain ; [vn] 1. (필요한 것을 제공하여) 살아가게[존재하게/지탱하게] 하다 [본문으로]
40. debacle ; [명사] 대실패, 큰 낭패 [본문으로]
41. crank sth out ; (특히 질 낮은 물건들을) 빠르게 만들어 내다[쏟아 내다] [본문으로]
42. cash flow ; [명사] 현금 유동성(한 사업체의 수입과 지출의 흐름) [본문으로]
43. quadruple ; [동사] 네 배가 되다; 네 배로 만들다 [본문으로]
44. time frame ; [명사] (어떤 일에 쓰이는・쓸 수 있는) 시간[기간] [본문으로]
45. so too is ~ ; ~도 그렇다 [본문으로]
46. sheer ; [형용사] (명사 앞에만 씀) (크기・정도・양을 강조하여) 순전한 [본문으로]
47. breadth ; [U , C], (참고: length) 2. (지식・관심 등이) 폭넓음 [본문으로]
48. filing ; 1. [U] 서류 철하기[정리] 2. [C] (특히 美) (공적) 기록물 [본문으로]
49. logistics firm ; 물류기업 [본문으로]
50. food manufacturer ; [명사] (영양학) 식품제조업 (食品製造業) [본문으로]
51. interactive media ; [명사] 대화형[쌍방향] 미디어[매체](Internet 따위). [본문으로]
52. wingspan ; [명사] 날개 길이, 날개폭(양 날개를 다 펼쳤을 때 한쪽 날개 끝에서 다른 쪽 날개 끝까지의 길이) [본문으로]
53. reminiscent ; 1. ~ of sb/sth 연상시키는 [본문으로]
54. bloated ; 1. 부은, 부푼 [본문으로]
55. stock market ; [명사] 증권 거래업; 주식 시장, 증권 거래소 [본문으로]
56. apply discount ; 할인을, 할인율을 적용하다 [본문으로]
57. reflect ; 3. [타동사][VN] (사물의 속성・사람의 태도・감정을) 나타내다[반영하다] [본문으로]
58. inefficiency ; 1. [U] 비능률, 무능, 무효력 2. 비능률적인 것 [본문으로]
59. power ; 1. SUPPLY ENERGY | [타동사][VN] (주로 수동태로) 동력을 공급하다, 작동시키다, 2. MOVE QUICKLY | [자,타동사][+ adv. / prep.] (특정한방향으로)맹렬히 나아가다[나아가게 하다] [본문으로]
60. operation ; 4. BUSINESS | [C] 사업, 영업 [본문으로]
61. rent ; 2. ~ sth (out) (to sb) (집세・사용료 등을 받고) 세 놓다[임대하다] [본문으로]
62. seller ; 1. 파는 사람, 판매자 [본문으로]
63. air-freight ; [명사] 항공 화물; 항공 화물 수송 체계 ;; [명사] 항공 화물 운송업, 화물 공수업[편(便)]; 공수 화물; 항공 화물 요금. (또는 áirfrèight) [본문으로]
64. hub ; 1. [주로 단수로] ~ (of sth) (특정 장소・활동의) 중심지, 중추 [본문으로]
65. cash register ; [명사] 금전 등록기 [본문으로]
66. experiment with ; …을 실험하다. [본문으로]
67. presumably ; [부사] 아마, 짐작건대 [본문으로]
68. utility ; [명사] (특히 美) (수도・전기・가스 같은) 공익사업 [본문으로]
69. commerce ; [U] 무역; 상업 [본문으로]
70. regulator ; 1. (산업・상업 분야의) 규제[단속] 기관[담당자] [본문으로]
71. antitrust ; [형용사] (명사 앞에만 씀) 법이 독점 금지의 [본문으로]
72. enforcer ; [명사] 집행자(특히 정부 내에서 업무 등이 실행되도록 하는 사람) [본문으로]
73. see through ; (진행형으로는 쓰이지 않음) (특정한 기간 동안) ~를 도와[견디게 해] 주다/~가 ~을 나도록[견디도록] 해 주다 ;; 끝까지 지켜보다, 도와주다(=assist, guide) ;; 꿰뚫어 보다, 간파하다. [본문으로]
74. pristine ; 1. 완전 새 것 같은, 아주 깨끗한 [본문으로]
75. well-regarded ; Admired, highly thought of, approved of. [본문으로]
76. a boon to ; …에 대단히 유용한 것. [본문으로]
77. pose a problem ; 문제를 일으키다. [본문으로]
78. rough calculation ; [명사] (수학) 어림셈 [본문으로]
79. earnings ; 2. (기업의) 수익[이익] [본문으로]
80. stand accused of ; …로 고발[고소]당해 있다; …로 비난받고 있다 [본문으로]
81. clout ; 1. [U] 영향력 [본문으로]
82. extend power ; 권력, 권한, 권세를 확장하다 [본문으로]
83. adjacent ; [형용사] ~ (to sth) 지역・건물 등이 인접한, 가까운 [본문으로]
84. comparative ; 2. 상대적인, 비교적 [본문으로]
85. immunity ; 2. ~ (from sth) 면제 참고 diplomatic immunity [본문으로]
86. legal liability ; [명사] 법적의무, 법적책임 [본문으로]
87. inflammatory ; [형용사] (못마땅함) 선동적인, 강한 분노를 유발하는 [본문으로]
88. vet ; 1. (어떤 직책을 맡게 될 사람에 대해) 조사[심사]하다 ;; 참고 positive vetting, 2. (내용・품질 등을) 점검하다 [본문으로]
89. chip away ; 1. (…을) 조금씩 잘라내다[at]; 벗겨지다 [본문으로]
90. business model ; 비지니스 모델 ,기업이 서브하는 고객들에게 가치를 제공하기 위해 기업이 개발하는 전략들 [본문으로]
91. predatory pricing ; [명사] (상업) 약탈적 가격 결정(어떤 기업이 다른 회사들이 더 이상 경쟁을 할 수 없어 상품 판매를 중단해야 할 정도로 가격을 낮춰서 상품을 파는 것) [본문으로]
92. tempting ; [형용사] 솔깃한, 구미가 당기는 [본문으로]
93. depend on ; 1. ~을 신뢰하다[믿다] ;; 참고 trust [본문으로]
94. utility ; 1. [C] (특히 美) (수도・전기・가스 같은) 공익사업 [본문으로]