#2 - Amazon (NASDAQ:AMZN)
You’ve heard the phrase too big to fail. Amazon (NASDAQ:AMZN) may very well be too diversified to fail. Some may say that a member of the group of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks shouldn’t qualify as a “boring” stock. I disagree. Amazon is actually becoming more like a “forever” stock every day.
The company has a broad reach that goes well beyond e-commerce. Amazon has a presence in the growing areas of cloud computing (Amazon Web Services), digital streaming, and artificial intelligence. Of course, at the moment, its e-commerce business is taking center stage for millions of Americans, many of who are discovering the benefits of shopping from home for the first time.
If there’s one headwind for Amazon, it would be that its size is drawing the attention, and the ire, of regulatory agencies. In the pre-pandemic days, Amazon was seen as an example of monopolistic excess. There has been talking of forcing the company to get broken off into pieces.
Of course, considering that many of those same individuals are probably turning to on-line shopping over in-person shopping, they may be softening their stances.
Amazon stock is not inexpensive, and this is not a stock that you will be buying on the dip. But the company has two strong core businesses (e-commerce and cloud computing). And they will be leveraging those strengths into other areas.
Unlike some of the stocks in this presentation, Amazon does not pay a dividend. But that’s because, despite its size, the company continues to reinvest in its business relentlessly. And as those investments pay off, Amazon’s margins should improve, which provides another reason to love this stock.
About Amazon.com
Amazon.com, Inc engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content.
Read More - Current Price
- $224.92
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 42 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $243.00 (8.0% Upside)
