Amazon’s Alexa Is Everywhere -- But Doesn’t Make Much Money Yet

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Since Amazon (AMZN) - Get Report released its first Echo in 2014, Alexa has grown into a force with more than 100 million Alexa devices sold, according to Amazon.

It’s a hit with consumers and a growing ecosystem, with 100,000 skills -- akin to apps on mobile devices -- available for use.

However, Alexa’s popularity has not translated to meaningful revenue thus far, at least according to a recent report.

Some investors hoped that Alexa’s ubiquity would lead to an embrace of paid skills, in-skill purchases, voice shopping, advertising and other potential revenue streams. But that apparently hasn’t materialized yet.

The Information reported recently that Alexa skills brought in Alexa just $1.4 billion in the first ten months of 2019, compared to the company’s target of $5.5 billion.

Amazon shares are up 16% so far this year.