Cyber Monday Strengthens AMZN Stock’s Momentum

Advertisement

With both Black Friday and Cyber Monday in the books, the 2015 holiday shopping season is officially underway. No company better encompasses Cyber Monday, or perhaps the holiday shopping season in general, than Amazon (AMZN), which is just the cherry on top of the stock’s continued bull case.

Amazon AMZNHeading into Cyber Monday, InvestorPlace’s James Brumley pointed out the word-of-mouth momentum that comes as a result of the online shopping day, writing:

“Amazon has an opportunity to establish itself as the best place to get merchandise at the best prices. That’s a message that echoes the rest of the year, and that’s perhaps the even bigger upside to Cyber Monday for AMZN stock — consumers everywhere are simply saying the word ‘Amazon’ to their friends and family.”

This Cyber Monday chatter was indeed a reality — and it wasn’t just to family and friends. Fortune reported that Amazon received nearly 10 times the number of social media mentions than Wal-Mart (WMT) and around five times as many as Target (TGT), which got a decent amount of negative publicity thanks to website problems.

It wasn’t all talk, either. Fortune noted that being top-of-mind was actually reflected in sales as well; ChannelAdvisor estimated a 21% year-over-year increase for the e-commerce king on Cyber Monday.

Meanwhile, AMZN stock hit a new all-time high today, perhaps riding those results and the overall holiday shopping optimism higher.

But, going back to Brumley, he hits an important point that I want to reiterate: This success and momentum is an indicator of what’s to come.

Amazon Stock Is a Surging Snowball

It’s not just the e-commerce mega-trend, which I pointed out in a bullish piece about Amazon stock about a month ago, either. The fact that year-over-year growth is trending at 15%, according to the Census Bureau, is just the tip of the iceberg for Amazon stock. The branding, ubiquity and convenience of Amazon is the real catalyst. It creates a snowball effect that translates into strong fundamentals, and will later translate into continued outsized stock gains.

Barclay’s agrees, noting that Amazon stock looks promising in 2016 despite the valuation concerns that have naturally popped up after this year’s 120% run. The analysts believe that for Amazon (and other leading tech stocks hitting new highs), the success is being “led by real and significant improvements in fundamentals.” I couldn’t agree more.

I’ve been applauding Amazon stock for a list of reasons likely longer than most kids’ Christmas wish lists: its strong balance sheet, rapidly growing sales, long-awaited and rapidly-growing profits, leading position in an expanding industry, and its continued investments in cutting-edge technology.

Amazon’s stellar Cyber Monday performance is symbolic of the company’s existing dominance and is a catalyst for its continued momentum. Even after the holiday shopping season comes and goes, Amazon stock will still be worth adding to your cart.

Hilary Kramer is the editor of GameChangers, Breakout Stocks Under $10, High Octane Trader, Absolute Capital Return and Value Authority. She is an accomplished investment specialist and market strategist with more than 25 years of experience in portfolio management, equity research, trading, and risk management. She has extensive expertise in global financial management, asset allocation, investment banking and private equity ventures, and is regularly sought after to provide her analysis on Bloomberg, CNBC, Fox Business Network and other media.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2015/12/cyber-monday-strengthens-amzn-amazon-stock-momentum/.

©2024 InvestorPlace Media, LLC