Ecommerce. You guys didnt even know if this thing was going to work. We had a pretty good instinct. If you make the best Service Online, people will come. This is a company that wants to control the infrastructure. As computers continue to get cheaper, we will layer innovation on top of that. Its plausible that amazon will know you better than you know yourself. Alexa its in our homes. Should people trust that it wont be used against them in some way that they dont authorize . Absolutely. At our fingertips. Amazon web services took over the web basically in a decade. Does having that much power give you pause . Thats a significant responsibility. Were aware of that. And now it fuels our economy. Amazon is americas second trillion dollars company now. The company is now worth almost as much as the entire economy of australia. Is amazon too big . I dont think amazons too big. Amazon has got to pay i think they have monopoly power. Amazon has become an Invasive Species. So you think amazon should be broken up . Oh, 100 . A journey. Its a business miracle. And a leader unlike any other. This is blue moon. I ask people at amazon to wake up every morning afraid. Wake up terrified. Be afraid of our customers. Those are the people we have to Pay Attention to. Tonight, a cnn special report. I can guarantee you one thing, it will be fun. The age of amazon. How has the Retail Industry changed during this rise of amazon . Well, you have this sort of great white shark thats always, you know, kind of looming offshore. Great white shark . Well, this thing does and can eat everything. Despite holding only a small fraction of Global Retail sales, today amazon takes claim for nearly 50 krencents of every do spent in ecommerce in the United States, an astounding market dominance. Youve called what jeff bezos has built a miracle. Absolute miracle. Its one of the great maybe the greatest before he gets all through with it. Legendary investor Warren Buffett even called himself an idiot for not investing in amazon earlier. What is it about jeff bezos the man that has made him and amazon such a success . I wish i could give him a blood test or something. You want to clone him . In fact, no. Id want a transfusion actually. Warren buffett told me just a few weeks ago the rise of amazon in his view is a miracle. Is it a miracle . Its a business miracle. Really . I mean you wouldnt have thought that almost a trillion Dollar Company would be formed in 25 years, that it would disrupt so many things and create so many different things. Its still a growing machine, so, yeah, its a business miracle. Miracle seems like its an act of god, and amazon has been anything but. I think its the application of business wisdom and Technical Expertise over a long period of time. Brad stone has been studying amazon and writing about its growth since the late 90s. Youre writing another book about amazon. Whats the focus . Where does this pick up . The Everything Store ended in about 2011, and there was so much story left to tell. The company is about four times larger than it was then. Wow. So much has happened. In addition to selling millions of products, amazon also manufacturers thousands of its own products for the amazon marketplace. Everything from batteries to luggage to motor oil. But then increasingly, more than half of whats sold on amazon comes from a combination of little mom and pop sellers to bigger operations that are selling directly to amazon customers on their own, and amazons just taking a cut. A seller, a manufacturer, a marketplace, and just the beginning of amazons reach. Theyre making investments in health care. Youre trying to fix that, make it better with james my dimon and with jeff bezos. What should america expect the three of you could do on health care . That well do our best. Its a 3. 3 or 3. 4 trillion industry. And finance. What would your over under be on amazon becoming a bank one day . I think its i really dont know. Even a category like online advertising, theyre the third biggest platform for ads in the u. S. Only after google and facebook. Television. Whos the second largest spender on original scripted television in the world right now . Amazon. How big do you guys want to be . It has been reported that amazon spends 5 billion a year on original and licensed content. Am i in the ballpark . I cant confirm or deny that. Okay. Alexa okay. The most innovative product of the last three years, i would argue, is amazons echo device. Alexa, turn on the shower. So it can warm up. Whether theyre bumping up against facebook or google, whether theyre bumping up against apple, anywhere theyre bumping up against other big players, theyre winning. Theyre also shipping. Amazon has amassed its own logistics empire with an expanding fleet of trucks, planes, drones, robots, and of course warehouses. Hundreds of warehouses. It makes sameday possible and makes nextday delivery possible. There are some who say that amazon killed traditional retail. How do you see it . What were trying to do is invent for customers. We sort of look at things we could make better by innovation. Zbl i would describe amazon in medical terms an opportunistic infection. Now, were some of these companies who went out of business going out of business anyway . Yeah. But amazon made the decline much faster. In part by reimagining the physical store experience with their own ameazonbranded retai stores. Amazon is now the only firm in the world that can really perform consistently what i refer to as jedi mind tricks. When amazon announced the acquisition of whole foods, the value of kroger, its value declined a third. Its not just a matter of being big. Its also the structure of its power. Stacie mitchell is codirector of the institute for local selfreliance, a nonprofit that studies economic concentration. A handful of Big Companies have taken over large swaths of our economy. We often try to understand amazon by talking about all the different businesses that its in. A more accurate way to understand amazon is this is a company that wants to control the infrastructure, the rails that other Companies Need to use in order to get to market. The infrastructure infrastructure. Infrastructure lets entrepreneurs do amazing things. In addition to the retail platform, the cloud is another area that is essentially infrastructure. Speed is a really important part of the culture at amazon. Were trying to enable really any company or any government to be able to run their Technology Infrastructure on top of our Technology Infrastructure platform. Though a lesser known part of amazon, aws, amazons cloud business, has been instrumental to the companys bottom line. Amazon web services took over the web basically in a decade. When Investigative Technology journalist kashmir hill noticed, she decided to try an experiment to live without amazon. I worked with this technologist who built a tool for me that just prevented any of my devices from talking to amazon servers. So that prevented me from using the thing i used the most with amazon, which is the amazon web services. Not surprising given that aws supports countless companies and Government Agencies and powers onethird of the worlds cloud. Netflix, conde nast, the cia all rely on amazon web services. Its just impossible to avoid. Amazons become an Invasive Species. An Invasive Species . 100 . Ready for shipment. Next, how bezos did it. Hong kong, japan, australia. This is day one. This is the very beginning. And fall is here. Its time to get back to school, back to work, and back in the blind. Because opening day is coming, and offseason day dreams are about to become a reality. Its your season. So head to Bass Pro Shops and cabelas kick off sale and save on archery gear from black out, plus Camo Clothing and footwear from redhead and cabelas. Your adventure starts here. Morning. What are you doing . Isnt it obvious . Nah. Were delivering live market coverage and offering expert analysis completely free. Were helping you make sense of the markets without cable or a subscription from anywhere you are. I get that. But what are you doing here . Nice pajamas. Really . I say pajamas. Pajamas, pajamas, whichever. Good. Yahoo finance live. Stream free anywhere. Welcome to the show. Lets make finance make sense. Should always be working harder. Thats why, your cash automatically goes into a Money Market Fund when you open a new account. And fidelitys rate is higher than etrades, td ameritrades, even 10 times more than schwabs. Plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. Just another reminder of the value youll only find at fidelity. Open an account today. Sleep number 360 smart bed. Sty. Sale of the year on a can it help keep us asleep . Yes, it senses your movements and automatically adjusts to keep you both comfortable. Its the last chance to save 50 on the sleep number 360 limited Edition Smart bed. Plus 0 interest for 36months. Ends labor day. The first survivor of alzis out there. Ase and the Alzheimers Association is going to make it happen. But we wont get there without you. Join the fight with the Alzheimers Association. Yeah. Yeah, this is nice. Hmm. How did you make the dip so rich and creamy . Oh its a philadelphia family recipe. Can i see it . No. Philadelphia dips. So good, youll take all the credit. By 2012 jeff bezos. Jeff you would be hard pressed to find someone who hadnt heard of jeff bezos. Jeff bezos, the god father of the virtual bookstore. But while researching his book, journalist brad stone found that person. I said, im writing a book about amazon and about this guy named jeff bezos, and i would like to talk to you for it. And he had no idea what i was talking about. That person was jeff bezos biological father. I was like, well, hes your son, and he was perplexed. And i said when you were in high school back in albuquerque, you know, you had a son named jeff. And he said, is he still alive . Wow. And i was like, yeah, hes one of the wealthiest guys in the world. Jeff bezos was born in albuquerque, new mexico, in 1964. His mother, jackie guice, was a junior in high school when she and her boyfriend Ted Jorgenson became parents. She doesnt talk about it that much, but my mom had me when she was 17 years old. You could ask her but im pretty sure that wasnt cool in 1964 to be a pregnant mom in high school. But by the time jeff turned 2, his mother and jorgenson, a circus performer and unicyclist had split up, and jackie was left to raise her son on her own. Look at jeff. Look at that hair and the glasses. One of bezos closest friends from high school, joshua weinstein, remembers jackie as a loving and determined mother. Jackie is the toughest, hardest working person ive ever met and the most loyal, and jeff gets that from jackie. Jackie bezos was clearly the force in jeffs life. A fiercely protective mother who got jeff into the best schools and got him the best opportunities, and she also recognized, i think, jeffs abilities early on. Jackie and jeff wouldnt be a family of two for long. Soon jackie would fall in love with a cuban immigrant named miguel bezos. They married when jeff was 4. My father adopted me when i was about 4 years old. I have the worlds best dad. Science whiz jeff bezos is an outstanding student emphasizing high standards. Bezos academic ambitions would lead him to the top of his High School Class and then to princeton university. I went to princeton specifically to study physics, but a couple of years into it, i realized that i wasnt smart enough to be a physicist. And then i transferred to Computer Science and electrical engineering, which i loved, and never looked back. After college, bezos landed on wall street at the Quantitative Hedge Fund d. E. Shaw, where he would meet his soontobe wife mckenzie. He called me up one day and said, im getting married. I said, great, to who . Just six months after they began dating, bezos and mckenzie were pear married. And bezos began to rise through the ranks at d. E. Shaw. It spans the globe like a superhighw superhighway. It is called internet. I started looking at the internet, and i found this incredible, startling fact. Jeff bezos saw that web activity had jumped 230,000 in a short period of time. That was the ding, ding, ding in his head. Yeah, i think he was able to see very early, you know, that the web was growing, that people were embracing it, and that it would create a whole set of new business opportunities. Jeff called me, and he said, mckenzie and i are quitting our jobs and were moving to seattle, and were starting a company. I said, great. What are you going to do . He said, were going to sell books. I said nice. He said on the internet. I said, cool. Whats the internet . In 1994, then 30yearold jeff bezos ditched his lucrative wall street job, borrowed his fathers car, and drove with his wife mckenzie to bellevue, washington, just outside seattle. And outside that garage, jeff bezos started his own company, an online bookstore. And by the end of the year, that company had a name amazon. I went to www. Amazon. Com and started searching for books and was immediately hooked. Jennifer cast would become amazons 25th employee. Thank you for calling amazon. Com. How can i help you . By the time she was hired in 1996 to run marketing hello, amazon. Com. Amazon headquarters had moved from the bezos garage to actual offices in downtown seattle. It was definitely startup feel. The first building, it was a dump. Jeff thought that it was too fancy for us. From w there was no airconditioning, stained carpets, but we loved it. This is a solid core door. The first thing you did when you started at amazon is you built your own desk. Greg hart joined amazon in 1997, working in Product Management and mavlthing for books. Today he manages amazons foray into prime. Was it truly frugal to save money . Thats exactly how it started was frugality, but its a good symbol of the mind set jeff wanted to create. We had to be resourceful and creative. But in order to expand beyond books, bezos needed capital and a lot of it. Amazon. Com jumped 5. 50 on its first day of trading. So in may of 1987, in the middle of the dotcom frenzy, amazon went public. Whats really incredible about this is this is day one. This is the very beginning. This is the kitty hawk stage of electronic commerce. Day one. Its always day one became the bezos mantra. In his first letter to shareholders, bezos sketched out the foundation of amazon. Its all about the long term. Id liken it to babe ruth kind of calling his home run shot. It was audacious. Bezos would stick to that longterm thinking even during amazons toughest times. Amazon stock has lost much of its luster. After the dotcom bubble burst, amazons stock price tumbled. Investors ran for the exits. Losing more than 90 of its value in the next two years. There were famous analysts who said amazon would run out of money. But it was also a hard time. They were losing a lot of executives. Yeah. Our first announcement is a complete video game store. Facing intense pressure store number two. Bezos pushed ahead right into new markets. Tomorrow we launch these four new stores. People were amazingly customerfocused. They felt like they were inventing and breaking new ground. But with new inventory came new problems. How to store and ship all of it. So you are often referred to as the other jeff. Thats my name. I think its great. I grew up as a programmer. Thats me. Jeff wilkie has been with amazon for 20 years and rarely gives television interviews. Hes now one of bezos top executives. We have essentially an assembly process. But back in 1999 when wilkie first joined amazon, he used his background in manufacturing to transform amazon delivery into what would become amazon prime. You guys didnt even know if this thing was going to work . Prime . True . No, we didnt know for sure that customers would love it, but we had a pretty good instinct. Both of you, both jeffs are big risk takers, is that right . I think so. I think prime at the time was a big risk. Today its estimated that more than half of u. S. Households are prime members. What should that tell us about how important prime is to amazons success . I think its very important, but its not the only thing thats important for success. They say about you that are you the most powerful man in the cloud. Do you like that description . The man behind amazons cloud next. At tmobile, what can you get when you a buy a Samsung Galaxy note 10 . A Netflix Subscription on us. And for a limited time. Buy any Samsung Galaxy note 10 and get one Samsung Galaxy note 10 for free. Summers not the time for making bucket lists. Bookers know summer is for booking it. chime, slam, chime like booking a beachside resort and ordering two more tacos than you need to. Check. Showing the deep end whos boss. Check. Starting a scooter gang with the fam. Check. Awesome. Bookers know summer wont last forever. Youre going to thank me. So be a booker at booking. Com. The worlds 1 choice for booking accommodations. Her saturdays are a never ending montage of comfort. 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