Amazon.com, Inc. (AMZN) Adds Vehicle Sales to Its ‘To-Dominate’ List

Betting against Amazon.com, Inc. (NASDAQ:AMZN) and Amazon stock continues to be a foolish game. Despite concerns about high valuations against its razor-blade business model, AMZN stock seemingly has no ceiling.

Amazon.com, Inc. (AMZN) stock logo

Amazon doubters are learning this the hard way today.

Amazon stock has added about $15, or about 2% in the afternoon trading session, resulting in yet another all-time high for AMZN. It joins other growth tech stocks like Facebook Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), which are running solidly higher too.

The reason for the excitement? There’s no new news out today, but optimism seems high concerning Amazon’s recent news that the e-commerce giant is looking to disrupt yet another industry: vehicle sales.

That’s right. A mere 22 years after the Seattle-based company started as a bookseller, AMZN wants to sell cars.

Amazon Stock Will Fly on Vehicle Sales

Looking to accelerate the company’s already-strong growth rate, Amazon Chief Executive Jeff Bezos is reportedly ready to mash the gas pedal into the $1.2 trillion new- and used-car sales market.

What do you suppose that math would equate for AMZN stock, given the retailer’s rate of dominance?

Analysts at Morgan Stanley predicted Amazon could potentially launch a new and pre-owned vehicle section on its marketplace. While Bezos has yet to confirm these reports, Amazon’s recently launched “Amazon Vehicles” section — a new site that lets users browse thousands of different car models — would suggest Bezos is testing the waters.

Investors are wasting no time bidding up Amazon stock on the possibility. Shares are up nearly 10% since the news broke in late August.

At the moment, users can’t buy vehicles directly from the site. But it’s only a matter of time before Amazon, which is seemingly in the vehicle market data-collection phase, makes this possible.

And as to the notion of “valuing AMZN stock,” it has always been expensive. This has never mattered to growth investors, who have become filthy rich in the past decade by betting on this perpetually “overbought” stock.

To the extent Bezos can find ways to dominate the car market, Amazon stock will continue to drive higher, rewarding patient shareholders.

As of this writing, Richard Saintvilus did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/09/amazon-stock-amzn-vehicle-sales/.

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