Should You Consider Buying Amazon Stock Before December 19th?
Amazon, with a current stock dip of -1.44%, is a colossal player in the tech sphere, dominating both online e-commerce and cloud computing through Amazon Web Services (AWS). Nevertheless, I believe the company has room for improvement in the realm of streaming. Despite investing in Prime Video and producing original content with big-name stars, the service hasn't fully captivated me... until now.
Orchestrating a major shift is Amazon's upcoming original series, "Beast Games," set to premiere on Dec. 19. The reality show features YouTube sensation MrBeast (whose real name is Jimmy Donaldson), known for his eye-popping videos and staggering cash prizes. This collaboration has the potential to be a game-changer for Amazon.
How is Amazon collaborating with MrBeast?
If you're unfamiliar with MrBeast, allow me to catch you up: This 26-year-old wholesome knight of the internet has amassed an impressive following of over 330 million subscribers on his main YouTube channel. His secret sauce is simple - captivating content that revolves around generating a ton of money. MrBeast frequently designs elaborate obstacle courses for fans to win eye-popping cash prizes. Occasionally, he invites celebrities to partake in the fun, making for amazing viral videos.
"Beast Games" represents a large-scale assembly line of MrBeast's signature cash prize extravaganzas. When the series debuts later this month, viewers will witness an astounding 1,000 contestants battle it out in a series of challenges for a grand prize of $5 million.
Has Amazon trumped Netflix with this deal?
In recent years, MrBeast has alluded to attempted partnerships with streaming titan Netflix. While reports of any substantial negotiations remain unconfirmed, it's clear that MrBeast and Netflix never reached an agreement. Deserving of praise, Netflix has bolstered its entertainment portfolio with high-profile productions, like inking deals with latest YouTuber sensation Jake Paul, as well as sports collaborations with the NFL and TKO Holdings Group.
What could a MrBeast partnership yield for Amazon?
This collaboration with MrBeast appears to be a pivotal move for Amazon.
Statista reports Amazon Prime has a whopping 200 million subscribers globally, a majority of whom hail from the United States, with 180 million Prime members. According to a BI Intelligence report, over 40% of these Prime shoppers lean towards the 30-49 age bracket.
MrBeast's fan base, on the other hand, is dominated by Gen Z and millennial viewers, tuning in for wild challenges and cash giveaways. This union effectively enables Amazon to tap into younger demographics that lean heavily on e-commerce. Moreover, the international appeal of "Beast Games" presents an opportunity to accelerate Prime's expansion in markets beyond the United States.
"Beast Games" is not solely an asset for Amazon's streaming division. Given the subscription model of Prime, this partnership could mean an influx of fresh subscribers, who already show preference for online shopping. As these new users become more immersed in Amazon's ecosystem, the tech giant can begin cross-selling other profitable services and products.
All signs point to this being the perfect moment to take a stake in Amazon stock and prepare for the long haul.
This collaboration between Amazon and MrBeast, as seen in the upcoming series "Beast Games," has the potential to significantly boost Amazon's finance by attracting a younger demographic to its Prime service. With MrBeast's Gen Z and millennial following, Amazon can leverage their interest in e-commerce and potentially increase its subscription base. Additionally, with the international appeal of "Beast Games," Amazon can accelerate its Prime expansion in markets beyond the US. Investing in Amazon stock now might be a profitable move, given this exciting development in the realm of money and investing.
