Pricey Amazon Stock is Still a Long Term Winner

Amazon.Amazon beat earnings expectations when it revealed its second quarter data on Thursday, and it continues to hit new operational milestones. Despite being the priciest tech and eCommerce stock on the market, it remains a viable long term option for investors who want to capitalize on its growth.

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Amazon.com Inc. (NASDAQ: AMZN) is one of the world’s largest eCommerce companies and the biggest cloud services provider by total revenue. In its latest fiscal report, the company announced earnings of $10.30 per share, with revenue of $88.91 billion. This was a 40% year over year increase, confirming that the company’s growth can’t be stopped by the Coronavirus Pandemic. In some areas, the company has actually benefitted from the health crisis. Lockdown orders have pushed more consumers to online shopping, which is where Amazon derives most of its revenue.

Growth is expected to continue this year. The company has offered third quarter revenue guidance between $87 billion and $93 billion. Analysts had predicted just $86 billion.

Shares jumped more than 5% in after-hours trading on Thursday, and more growth is likely before the close of the market on Friday. Amazon’s shares aren’t cheap, but the company’s consistent revenue and earnings growth make it a top growth pick for 2020. The share price has almost doubled from the 52-week low, making this one of the most successful stocks on the market today.

Key Data:

  • 1 Year Price Growth: 49%
  • YTD Price Growth: 16%
  • 3 Month Price Growth: 36%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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