If you don't know Amazon, you live under a rock. Considering I am an avid Amazon "Prime-er" and order someone about once a week when I am too lazy to go to the store, this is my favorite company. Not to mention they seem to be taking over every aspect of society and are doing a better job at it. I can get a product I need right to my door in two days (or less) and it will satisfy my need for instant gratification. Alright, enough about my love of Amazon as a company. How are they actually doing?? How is their stock performing and should you think about adding it into your portfolio mix?
As of this morning (January 8, 2018) at 9:40 am this is their stock:
This same stock in 2014 around this time period was $387.60. In the past 4 years they have grown 3.2x. But when does the growth stop? Apparently, not any time soon for Amazon.
As I write this post, I am watching their stock tick up and up and up. While, it will probably have its ebbs and flows, ups and down, this is a strong buy. They are an innovative company with projected Earnings Per Share around 4.32. Earnings per share is Net Income/# of Outstanding Shares. What this means is that for every ONE Share of Amazon stock they are earning $4.32. That is not bad at all. As well, analyst are forecasting 20% growth in the next 5 years.
Downside of Amazon stock: Its freaking expensive. $1242 to buy a share. If you had bought Amazon 4 years ago you would be very happy right now. However, unless you have a large sum of money ready to be invested you won't get much bang for your buck in Amazon.
My recommendation: BUY. If you can. HOLD. if you have it. and keep holding on to it.