As one of the premier technology companies in the world, Amazon.com, Inc. (NASDAQ:AMZN) continues to be a core portfolio pick of mine.
The company also happens to be a key piece of so many investors portfolios today directly or indirectly via holding exchange traded funds (ETFs) or other index-tracking diversified investments, many of which happen to hold a significant piece of Amazon. In this article, I’m going to discuss why Amazon stock could continue its torrid stock price appreciation long-term.
Amazon’s market position as the key player in e-commerce in North America, and one of the largest players in this space globally, has positioned the company’s stock as a "must-own" for most North American growth-oriented investors. With many analysts indicating that Amazon’s growth trajectory as likely accelerated to be perhaps five years ahead of where it would otherwise be as a result of the coronavirus pandemic, the investing thesis for many investors has only been emboldened during this period of volatility and uncertainty.
With a rich valuation of more than 70 times earnings at the time of writing, Amazon’s stock is not cheap. That said, I do think we’re about to witness a few impressive quarters of growth comping up, and do see 2021 and 2022 forward earnings more in line with other mature/developed blue chip technology leaders in this sector. For these reasons and many more, Amazon is a stock every investor should consider today.
Invest wisely, my friends.
