Amazon.com, Inc. (NASDAQ:AMZN) is a classic example of an investment that sells itself. It’s not just for the fact that AMZN stock belongs in the elite group of “FANG” stocks, which includes Facebook Inc (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX), and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL). That categorization certainly helps Amazon stock.
But more importantly, it’s the fact that the e-commerce giant is purely ubiquitous.
Over the years, I must have written about a thousand companies, or more. Invariably, I have my favorites. Sony Corp (ADR) (NYSE:SNE) and Japanese consumer techs are always good topics for me because I know how they operate. Gold and guns I find profoundly thought-provoking because who knows? Informal presidential advisor Alex Jones might be right about pending economic collapse and worldwide martial law.
However, none of these companies or sectors impacts my life as much as AMZN.
I suspect it’s the same for you. Am I alone in going to a Best Buy Co Inc (NYSE:BBY) store and logging onto Amazon.com, just to make sure I’m really getting the “best buy?” I thought not. You want to know why the AMZN stock price is so dominant? Your actions answers your questions.
True, what I’m proposing is completely anecdotal. The difference between analyzing Amazon stock and (insert company name here) is that these anecdotes are repeated millions of times. As in worldwide and daily. Frankly, many analysts can just offer a buy recommendation, and come back a year later looking like geniuses.
AMZN Stock Is Pushing All the Right Buttons
Of course, we have a job to do, so let’s get to it. If there is a reason to be concerned about AMZN stock, it’s their forward guidance. Management chopped its profit outlook to a range between $250 million to $900 million. This contrasts sharply with an initial consensus estimate of $1.33 billion.
On paper, that’s an ugly drop, prompting early calls for selling Amazon stock. However, as InvestorPlace contributor Chris Tyler points out, this assumes “aggressive investments in media, fulfillment and India.” I hope nobody took the premature warnings seriously, as AMZN stock is up 13% this year.