With news that the Amazon-Berkshire-JP Morgan healthcare joint venture has shut down, investors have begun to trade Amazon.com, Inc. (NASDAQ:AMZN) with a degree of caution of late. Much of the rapid rise in Amazon’s share price in recent years has come from the idea that this mega-cap technology company has the power to disrupt any industry it puts its mind to. I think this idea still holds true, and I’m going to identify one area I see massive growth for Amazon in 2021 and beyond for growth investors to consider.
Amazon has often been described as a transportation company more than anything else. After all, the ability to get a package from A to B (or "A to Z" as Amazon would want you to say) as quickly as possible has paved the way for structural changes to how consumers shop today. The e-commerce revolution would not have happened without this leap forward in logistics, and we all owe a lot to Amazon for making this happen.
Amazon has just announced the purchase of 11 used 767s for its fleet, purchasing planes for the first time rather than leasing them. Apparently the economics of this market have improved due to the coronavirus pandemic, a key opportunity for Amazon to continue to invest heavily in its infrastructure in a bid to become even more profitable long-term.
Shares are now down more than 10% from last year’s highs, providing some "growth at a reasonable price" investors to consider adding at these levels. This is a stock I’d definitely recommend investors keep on their watch list right now.
Invest wisely, my friends.
