Amazon.com, Inc. (AMZN): How Long Can the Bull Run Continue?

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Amazon.com, Inc. (NASADAQ:AMZN) is a unique creature in the stock market. Wall Street tends to treat AMZN with skepticism because it tends not to stockpile cash, but rather spend everything it has on broadening or deepening (or both) its market footprint.

Amazon.com, Inc. (AMZN): How Long Can the Bull Run Continue?

Unlike other tech juggernauts such as Apple Inc. (NASDAQ:AAPL), a bad quarter often means a big selloff in the stock. Even good quarters can spark negative sentiment if those great numbers and solid growth are somehow a harbinger of doom.

AAPL, on the other hand, can report lower sales and weaker growth in various markets, yet somehow analysts find a bullish case for Apple stock.

Yes, AMZN’s approach is certainly not standard operating procedure. But, it is what should be at the core of any good business — growth wherever you can get it. And, AMZN is ruthless when it comes to growth. When it enters a market, it’s not with plans of sitting on the sidelines. It wants to be the dominant player and goes in gunning for the top players in the space.

Many of these companies don’t have the digital dexterity AMZN does, so when Amazon enters it’s not only competing in a traditional way, but also disrupting an industry that has only made gradual changes to its business model over the years.

Remember, most big corporations like predictability. They find a revenue model and they stick to it, even if it’s a bit dated. This kind of traditional thinking is what got stores like Target Corporation (NYSE:TGT), Wal-Mart Stores Inc (NYSE:WMT) and Barnes and Noble Inc (NYSE:BKS) in trouble.

AMZN never stops bringing its A-game. And, it continues to expand its horizons. For instance, it’s now moving into the grocery business. And the pharmaceutical business is on the horizon.

But, what will certainly make these new ventures, as well as its current consumer ventures, flourish is its logistics operations. Moving products from the warehouse to the consumer’s house as quickly as possible is the fulcrum that will lift its consumer world.

And, Amazon doesn’t stop at drones or more distribution sites. Its ambitions will change the face of the logistics sector. The U.S. Postal Service, United Parcel Service, Inc. (NYSE:UPS), FedEx Corporation (NYSE:FDX) and smaller players will all feel the weight of AMZN’s desire to get packages to houses and offices by the next day, or sometimes even the same day.

What Can AMZN Stock Investors Expect?

Consumers, with their love of immediate gratification, will handsomely reward the fastest shippers. The question is whether that will be a contract shipper, or if AMZN will just build out its own fleet of drones and delivery trucks.

One thing I can promise is whatever path AMZN chooses, there will be plenty of critics on Wall Street claiming that the choice is the wrong one for Amazon stock — until they’re proven wrong, again.

Year to date, AMZN stock is up 33%. In the past 5 years, it’s up about 75% per year. In the past 10 years, Amazon stock is up about 135% a year.

As the saying goes, don’t fight the tape on this one.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2017/05/amazon-com-inc-amzn-how-long-can-bull-run-continue/.

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