Is Amazon the Best Stock on the NASDAQ?
Amazon.com, Inc. (NASDAQ:AMZN) has continued to be one of the hottest-performing stocks on the NASDAQ this year, yielding returns of 54%. At nearly 300 times its earnings, the share price is trading at a big premium, and that hasn’t been enough to keep investors away. When the stock was hovering around $1,000 it looked like it was encountering some resistance, but ultimately it broke through and as of the close on Wednesday was trading at more than $1,152 a share.
Amazon is not a new and high-flying tech stock that has just made it big, this is a company that has been around for some time and generated some significant returns for early investors. What’s shocking is that the share price continues to rise amid already high valuations. It seems impossible for investors to think they can buy now and still turn a good profit, but that’s probably what they were also saying a year or two ago.
We may very well be seeing an unsustainable bubble form that could be about to burst, but you wouldn’t know it from the frenzy that we’ve seen, specifically with Amazon’s stock. The tech company has shown no boundaries or limitations with its recent foray into grocery stores through its acquisition of Whole Foods.
Investors have been high on Amazon’s stock for some time and it has even outperformed big names on the NASDAQ like Tesla Inc (NASDAQ:TSLA) and Alphabet Inc (NASDAQ:GOOG), which have yielded returns of 47% and 32%, respectively. Even Facebook Inc (NASDAQ:FB), with year-to-date returns of 53%, hasn’t been able to outperform Amazon.
Despite its astonishing growth, Amazon could still be a great buy for investors today as it continues to innovate and find new ways to grow.