Amazon Is Going To Wipe Out The Supermarkets?

“Amazon is going bankrupt.”

That’s what the headlines said.

It was March 2001. The stock market was crashing.

Amazon.com Inc. (Nasdaq: AMZN) stock was cratering. In just a few weeks’ time, it went from $22 to $8. That’s a loss of 63%.

Then, on October 1, 2001, it bottomed out at $5.51.

Everyone was sure the company would go bankrupt.

Amazon denied the rumor, but nobody cared.

The financial media brought out the doom-and-gloomers. I remember they actually told people to sell Amazon.

“Get what you can and run for the hills. Prepare for another Great Depression,” they advised.

And yet they were completely, utterly wrong.

See, what you should have done is something else entirely…

They Were Wrong About Amazon Before, and They’re Wrong Again

If you had ignored the media hype and bought Amazon back in 2001 at $5.51, you’d be up 15,917% today.

Every $100 invested would be worth about $1.6 million.

Even if you’d bought Amazon at the top of its bubble high, on December 9, 1999, it still would have been a great investment. Since that time, Amazon stock has handed investors a 992% return.

Compare that to the S&P 500, which has only returned 75%. That’s 12 times the performance of the S&P 500. Incredible.

Now, you may wonder why I bring this up today.

You see, I’m hearing rumors about Amazon again. Moody’s, the rating agency, says Amazon “may actually be the weakest major retailer.”

My colleague Joe Hargett says Amazon might have big problems soon.

Others say Wal-Mart is now ready to crush Amazon. Some claim that Amazon is going to lose its shirt on Whole Foods. As you know, Amazon bought Whole Foods Market recently for $13.7 billion.

Personally, I believe the opposite. I believe that Amazon is about to upend the supermarket industry.

The Path to Domination

Amazon’s first act was to address Whole Foods’ biggest weakness — high prices — head-on.

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