Having recently released its earnings results this past week, Amazon.com, Inc. (NASDAQ:AMZN) retains its place as a top pick for technology-oriented investors looking for a core portfolio holding right now. In short, the company’s numbers cemented the fact that this is one of the best long-term growth plays out there.
Amazon posted an earnings-per-share blowout, and revised its growth forecasts higher for the near-term. The fact that the e-commerce secular trend underpinning this company’s growth thesis has not only remained strong, but accelerated of late, suggests investors owning this stock may not want to trim this holding for a while. Amazon is a stock that isn’t cheap, but has remained well-deserving of its premium for quite some time.
Additionally, given Amazon’s bottom-line outperformance of late, this is a company investors can reliably value on the basis of fundamentals, something conservative long-term investors like. This is not merely a revenue growth play, like so many other mega cap tech companies out there. Rather, this is a company with substantial earnings backing up its valuation, supporting its valuation and place in most investor portfolios today. Indeed, if one owns a tech-oriented exchange traded fund (ETF), one will own Amazon in a decent weighting.
I think Amazon’s growth trajectory combined with its earnings growth prowess of late makes this stock a great pick for every investor type today. I think the fact that Bezos has moved on from his role as CEO is noise, and would suggest investors focus on the long-term potential of this fantastic stock right now.
Invest wisely, my friends.
