A Stock Oasis in the Deserted Investment Market
Conduct a survey. Ask the next 10 people you see where they would go to buy books or music on the Internet. Actually, the conclusion is so foregone that you will probably shed the bother of a survey. Amazon is now more than a forest far away.
Any team of even mediocre managers with the right proportions of resources can try to sell products on the Internet. However, not all electronic commerce ventures are successful. The business track record of Amazon stock needs neither elaboration nor praise. The company is an icon of modern enterprise.
There are three major reasons why this stock is yet to reach its zenith. One is that the management is able to periodically expand its range of products and services on offer. Music was a famous horizontal expansion because that is something everyone loves. However, apparel and web site analyses are examples of niche diversifications that are profitable and sizeable for the right audiences. Overall, investors will be delighted to realize that Amazon bonds with customers tightly and on a global basis. It is just what a stock doctor would prescribe for business on the World Wide Web.
Secondly, the Internet audience has not even begun to approach any plateau. It is on the way skywards in India and China. Wireless web access on large cellular telephone screens will mean that people will keep shifting from television and books to the Internet: shopping implications are clear.
The recession threat is the third factor in favor of Amazon stock. Shopping at their web site saves time, ensures good value, suits impulsive buying, and gives you far more choice than a grumpy sales person at a physical store.
Keep buying at boutiques, malls, and duty-free stores if you like, but invest in Amazon stocks. It will keep you liquid in arid times.