This Girl Knows All Your Secrets... And She's A "Buy"

If high-tech companies rifling through your personal information freaks you out, you’re going to want to keep reading…

Or you might want to just go back to bed.

Today, I’m going to reveal how one of the world’s biggest public companies has infiltrated every single aspect of your life. It knows your likes and dislikes. It can predict what you’re going to buy and when you’re going to buy it. It even knows what sports and shows you enjoy in your free time.

And no, I’m not talking about Facebook.

It all comes down to a product that cost this company more than $300 million in losses last year. This loss-leader has the potential to eavesdrop on many of your conversations. But it’s much more than a sales gimmick. In fact, this product has a shot at vaulting its parent company to new heights.

The product is called the Amazon Echo. You’ve probably seen these before (or at least an advertisement).

The Echo is a desktop speaker that looks like a big hockey puck. It responds to voice commands with its breakthrough software called Alexa. You can tell Alexa to play your favorite music, ask her about the weather, or even tell her to order specific products through Amazon.

The Echo is a neat little gadget. But our focus today revolves around the Alexa software. That’s where Amazon is making its hay…

“In the two years since its release, Alexa has spread like wildfire, and the voice service is now integrated into dozens of home gadgets, including refrigerators and, soon, cars,” the Financial Times explains. “Amazon hopes that Alexa Voice Services, the digital mind behind the assistant, will become ubiquitous wherever voice commands are used.”

Most folks don’t list Amazon as a tech company. That’s fair. It’s “officially” a consumer stock—I get it. But this doesn’t mean Bezos & Co. are mailing it in when it comes to groundbreaking technical innovations…

Amazon is already dominating webhosting. Now, it’s looking to control the world of artificial intelligence via a virtual assistant.

Amazon revealed at CES that there are now more than 7,000 Alexa skills, which Geek Wires explains as “third-party integrations that extend the capabilities of its voice platform.” Alexa developers are in this game to dominate voice. And as Alexa continues to “learn” new skills and integrate with additional products, she will be a force to reckon with in the tech world.

Google owns search. Netflix owns streaming. If Amazon continues developing Alexa at the current rate, the company will own voice. This venture will entrench Amazon inside every home in America.

On Friday, we highlighted the ongoing meltdown of the brick and mortar retail sector.  While traditional retailers are attempting to lure you into their stores with coupons and sales, we explained, Amazon is sneaking into your home and your everyday life. It’s clear that Amazon is dominating the retail landscape for one important reason: It’s just plain smarter than the competition…

The Echo is the Trojan Horse. Alexa—the software—is what Amazon will use to perfect its ability to gather every shred of information about you and your family to add to its consumer database.

It’s a scary thought. But that’s one of the reasons we’re so bullish on Amazon in the long run. With its technological head start in the voice segment, there’s no stopping this juggernaut…

Sincerely,

Greg Guenthner
for The Daily Reckoning

The Daily Reckoning