Amazon (AMZN) had a pretty funny Super Bowl ad last night. It was about what life was like before its Alexa virtual assistant made our lives easier every day. But that was just the icing on top of the cake for this company.
Because on Friday, Amazon joined the $1 trillion club!
That’s right… in less than 25 years as a publicly traded business, Amazon went from a $400 million company to a $1 trillion company by market cap.
I woke up Saturday morning thinking, “Man, it wasn’t too long ago that Amazon was basically hated on Wall Street.” All the cynics would come on TV saying Jeff Bezos didn’t know what he was doing and was spending too much money.
As recently as 2014, Steve Ballmer was even calling Amazon a “nice company” but “not a real business”!
Ballmer wasn’t the CEO of Microsoft (MSFT) anymore, but he’d moved on to buy the Los Angeles Clippers and still found time to go on “Charlie Rose” and knock Amazon for not being profitable (at that point):
“I get if you don’t make money for two or three years… Amazon is, what, 21 years old and not making money!”
Amazon had been having a rough year – but how much of that comment was sour grapes at missing out on a 15,880% gain from the IPO in 1997 to the day Ballmer gave that interview?
Even if you just look back at 2005, this stock was down in the low $30s… now, 15 years later, it’s around $2,050 per share. That’s mind blowing. (And that all-time gain is up to 102,600%!)
If you’d bought at the $30 level, you’d have made 6X that investment in one day, when Amazon’s stock rose $180 on Friday alone.
That, by the way, was about $70 billion in market cap. Some of the microcap stocks I’m looking at are $100 million, $200 million stocks. It’s unbelievable how much money can be made in just one day.
I talk a lot about this in my latest MoneyLine podcast. I also look back at the other big heavyweights in tech: Microsoft, Cisco Systems (CSCO), and Intel (INTC). I did a study on their returns and what they tell us about timing – and how it pays to invest during those early years. If you haven’t tuned in yet, be sure to check it out.
But as far as what to buy now…
Amazon is not going to see a repeat performance anytime soon. When you’re a $1 trillion company, getting to $2 trillion is going to take a lot.
So – as much as I like Amazon as a company – this is why we want to find the next Amazon… the next Alphabet (GOOGL).
Do Yourself a Favor and Tune In on Wednesday
Two days from now, on Wednesday, February 5, I’ll be releasing my nine favorite microcap investment ideas for the new decade.
My Microcap Millionaire Portfolio will cover several of the big themes I talk about here in MoneyWire: 5G… the blockchain… the Internet of Things. Click here to RSVP and learn how I find the right microcap stocks for these trends.
You can buy great companies when they’re already huge, like Amazon today. Or you can buy early for the best payoff, like Amazon in 1997.
P.S. Microcap stocks have been some of the best investment recommendations I’ve ever made… like 1,502% profits on Office Depot (ODP) and 1,149% profits on Insulet (PODD).
Yet most people skip right over these stocks. They never hear about them at all! (At least, not until the big gains have already been made.)
I’d like to change all that. So click here to RSVP now for my Microcap Millionaire Project.
Matt McCall’s MoneyLine Podcast
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt discusses Amazon’s (AMZN) ascent to the $1 trillion value milestone. What does its rise tell us about investing and, more importantly, how do we find the next Amazon? Matt also dives into the upside potential of microcap stocks and unveils a new portfolio aimed at the smallest stocks in the market.
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
Learn where Matt McCall sees
huge investment opportunities right now:
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