There’s so much happening on Wall Street it’s hard to link news announcements, but I’m curious why Amazon stock is flat to up a bit today (plus 0.5 percent in a down market, at last check) despite the competition from Google’s new App Engine hosting service.
Google investors don’t seem overly moved by the announcement either, even though it opens a broad new front in the company’s potentially awesome developer and tools business. GOOG was down about 2 percent at last check.
Amazon investors may not care. It’s not a surprise that Google’s entering the cloud services business; it was a question of when, not if.
Also, despite its traction with Web developers, Amazon Web Service is still a relatively small part of Amazon.
Maybe investors are more interested in hearing that Amazon’s hiring 500 people at its Kentucky distribution center to “support growing customer demand” in its core business.