Why You Should Buy Amazon Stock

The following is a guest blog post:

When it comes to e-commerce, none can quite compare to the size and respect of Amazon (AMZN). From being a simple online book retailer to a massive marketplace and Internet solutions company.

Indeed, as many other companies have come and gone and investors have jumped on numerous trends, Amazon’s share price has been climbing at a steady pace.

Gone were the days of irrational exuberance where Internet companies were valued at numerous multiples of their earnings. Amazon has proven their profit model time and time again.

Of course, for many investors, one of the key questions that they may be asking is whether Amazon has potentially reached a peak and will eventually stop growing. Many trading signals are pointing to a possible correction.

Could investing now be too late? Does the share price still have steam and can Amazon keep growing. You would be surprised by the answer.

We will take a look at some high level fundamental analysis of Amazon’s market position and growth prospects to address the question most effectively.

Total Retail Sales

Although one would think that in 2017, most people would be buying online, this is not entirely the case. In fact, in the USA, 91% of total retail sales are done offline through brick and mortar retailers.

This means that there are still a large number of Americans who have to move to buying online almost exclusively. When looking at other countries in the emerging world like India, the numbers are even more impressive.

For example, Amazon has recently made a big push into India which many people see as the holy grail of the Ecommerce future. With over 1 billion consumers and growing internet coverage, Amazon is poised for much more growth.

In fact, eMarketer research firm has an estimate that global e-commerce sales will increase to more than $4 trillion by 2020.

Shopping Traffic

Among consumers, the Amazon name has become almost synonymous with online shopping. When someone wants to buy something online, they gravitate right towards Amazon and search for their goods there.

1 2
View single page >> |

Disclosure: Long GIS, VFC, HRL, GWW, CAH

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.
Bao Vu 1 year ago Member's comment

Can anyone shows me where to buy these amazon stocks?