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Keep Betting on Bezos With an Amazon (AMZN) Buy

AMZN zoomed past previous highs last week


Answer this question as quickly as you can. What’s the first company that comes to mind when you think of online retailing?

If your answer was (AMZN), then I suspect you’re in good company with most everyone else reading this. If you didn’t answer Amazon, then you probably aren’t a very astute online shopper.

Yes, I am biased toward Amazon, as I love the company, love the stock, and have traded it successfully many times since the late-1990s. I only wish I would have bought and held AMZN shares when they first went public, as that initial investment would be worth 20,000% more today.

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Amazon, led expertly by its founder and CEO Jeff Bezos, is the quintessential American dream company, one marked by innovation, shareholder wealth creation, job creation, and just about every other corporate virtue you could possibly ever want. Indeed, on the job front Amazon continues to deliver, having just announced plans to add some 7,000 jobs in 13 states, effectively beefing up the staff at its warehouses where orders are filled, and in its customer service division. The latest plans to expand are just that, the latest in a relentless march onward and upward by Jeff Bezos, who I suspect will go into the history books as one of the greatest business geniuses ever.

Most recently, Amazon reported earnings that actually saw a rare (yet small) unexpected lost in Q2. The company posted a Q2 loss of 2 cents a share, which was small when compared to the profit of 1 cent per share in the same quarter a year prior. Still, Amazon saw a year-over-year sales increase of 22% to $15.7 billion, although that top-line figure did miss consensus estimates.

So, what was the result of the miss on the shares? Virutally zilch. In fact, after opening lower on Friday, July 26, a day after earnings, AMZN shares rebounded and spiked some 3% to hit a new all-time high.

If an earnings miss,

slight, can’t derail this stock, what can? The answer is only a wider market selloff that sends investors running for the exits even in the greatest of companies. Shy of that, I think traders can get into AMZN here for at least another 10%-15% gain by the end of the year.

The momentum (both technical and fundamental) is with AMZN, as it continues its tremendous growth—and that’s why now is the time to keep betting on Bezos.

At the time of publication, Jim Woods held no positions in the stocks mentioned.

Article printed from InvestorPlace Media,

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