What Google's Cloud Warmongering Means for Amazon Stock Investors

Suddenly, the tech world has gone jealous. Everyone wants to be Amazon.com (NASDAQ: AMZN  ) .

Google (NASDAQ: GOOGL  ) offered the latest proof when it cut prices 4% on Cloud Engine, a low-cost hosting alternative to Amazon Web Services. EMC and VMware (NYSE: VMW  ) have also joined the effort with a spinoff called Pivotal, which is due to be formally unveiled before month-end, according to trade magazine eWEEK.

Even Microsoft (NASDAQ: MSFT  ) wants in, having recently cut prices for some on-demand services available through its competing Windows Azure platform. All signs point to a race to the bottom, which is good news for the likes of Netflix, which consumes vast amounts of Internet infrastructure for delivering its services. Amazon may not be so lucky, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.

What do you think of Google's power play? Please watch to get Tim's full take, and then leave a comment to let us know whether you'd buy, sell, or short Amazon stock at current prices.

Everyone knows Amazon is the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of its competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.


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