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Should You Add AMZN Stock to Your Cart in 2014? Our Experts Weigh In

A sky-high valuation hasn't held Amazon back yet

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Jeff Bezos Will Keep Amazon Stock Going

amzn-stock-amazon-stockBy Tom Taulli
IPO Playbook

Amazon (AMZN) has gained over 650% in the last five years. And while I do not expect a repeat performance over the next half-decade, I would not be surprised if AMZN stock keeps generating nice gains.

Jeff Bezos is simply a battle-hardened tech legend who has a tremendous strategic sense of megatrends. Let’s face it, his move into cloud computing was genius and will result in long-term growth. The Amazon Kindle e-reader was another great investment, which should also have a large payoff. Oh, and e-commerce still has a long way to run as well, much to the consternation of companies like Walmart (WMT), Staples (SPLS) and Best Buy (BBY).

Granted, the valuation of AMZN stock seems out-of-whack. But when it comes to companies that are leaders in their categories, this is generally the case. During their heyday, Microsoft (MSFT) and Cisco (CSCO) were able to fetch crazy valuations too.

But the most important thing is Bezos realizes that “only the paranoid survive.” This means he must be intense on the competition — and also must invest heavily in innovation. If not, a tech company can easily fail, such as we’ve seen with BlackBerry (BBRY). It can be brutal.

So far, Bezos and AMZN are showing no signs of slipping. In other words, it’s a good bet he’ll find new opportunities for growth, which should continue to fuel the Amazon stock price.

Article printed from InvestorPlace Media,

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