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April 7th, 2020 | 13:29 CEST

Amazon.com, Enthusiast Gaming, Netflix - perspectives of scalable business models

  • Online Business
Photo credits: pixabay.com

Modern society is constantly finding new ways to simplify life and increase comfort. For example, there are now successful business models that would have been unimaginable decades ago. The monetization of access to the customer, for example in the areas of entertainment, gaming and shopping, is progressing with increasing reach. Economies of scale in various areas and increased efficiency provide the basis for organic and inorganic growth. The management of consumption and entertainment from home on the coach is enjoying widespread popularity.

time to read: 1 minutes | Author: Mario Hose
ISIN: US0231351067 , CA29385B1094 , US64110L1061

Table of contents:


    Largest Player in North America

    The Canadian company Enthusiast Gaming is the largest online gaming provider in North America. Every month, an average of around 200 million gamers are reached via various channels. In the fourth quarter of 2019, the company generated revenues of CAD 10 million. Compared to the previous quarter, revenue per user increased by an average of 31%, and compared to the same period of the previous year, an increase of 178% was recorded. The gross margin was 34% in the fourth quarter of 2019. A total of 1.7 billion views were counted and at the end of the fiscal year the company had cash on hand of CAD 13.2 million. Management achieved this growth organically and inorganically. With a share price of CAD 1.74, the company is valued on the stock market at around CAD 125 million.

    The Global Number 1

    When Amazon.com started sending books by mail over 20 years ago, the company was literally burning money. However, the capital market provided the new economy player with sufficient liquidity and the global expansion could continue at any price. In the meantime, Amazon.com sets the conditions due to its market power and increasingly sends products via its own delivery service. The offer was perfected with subscription functions and digital products. The Amazon share is now worth around USD 2,000 and the company value is a substantial USD 1,000 billion. In 2001, the shares were still available at less than USD 6.00.

    From Pennystock to Global Player

    Netflix's roots also go back to the late 1990s, when the company was still an online video store that sent DVDs to its subscribers. In 2007, Netflix began offering video on demand to its customers. Today, the company has approximately 160 million customers around the world who can access the service 24/7. Meanwhile, the trend has also developed that more and more people are migrating from classic TV channels to streaming services. Netflix's reach and offerings are clearly the recipe for success for a market capitalization of over USD 166 billion. Yesterday, the share price of the former Pennystock company was 380 USD.


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    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



    Related comments:

    Commented by Mario Hose on April 23rd, 2020 | 09:00 CEST

    Alphabet, Amazon, Enthusiast Gaming, Facebook - the big investment opportunity

    • Online Business

    The largest companies in the world all started small. The most expensive companies on the stock exchanges often have one thing in common, they are in online business. It is also hardly surprising that most of these companies are located in North America, a region with purchasing power and an appetite for innovation. Several 100 million people live on one continent as a possible target group. Everything that works there will be able to be repeated in other parts of the world. The main advantage of online business is scalability. Once established and millions of revolving and passive revenues can be generated. The key to success is the access to the customer.

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