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Tuesday, March 31, 2020

INVESTING IN AMAZON STOCK 📈 Is Amazon Stock A Buy In 2017? #Best Education Page #Online Earning

INVESTING IN AMAZON STOCK 📈 Is Amazon Stock A Buy In 2017?


how's it going today guys so today we're
going to be talking about Amazon stock
and whether or not I see Amazon stock at
the buy right now and someone suggested
that when I do this style of video I
tell you guys in advance what my opinion
of the stock is just so you guys know so
in my opinion and obviously you guys
have to do your own research on stocks I
can't tell you for sure whether a stock
will go up but in my opinion I see
Amazon stock as a buy and there are
numerous reasons why this is but I
basically picked my I think it's six
favorite reasons why Amazon stock is a
buy and there are numerous other reasons
I just didn't want to make a 30-minute
video about it I could always do a part
two if you guys want me to talk about it
more but I'm sure there are other
reasons that Amazon stock is a buy and
if there's anything I missed make sure
you guys share your comments in the
comments below or if you guys disagree
with me let me know why you think Amazon
stock is overvalued or what your opinion
is on Amazon stock but anyways Amazon is
one of the most talked about stocks
among investors Amazon stock is up 12%
in the last three months 20% in 2017
alone 43% over the last 12 months and
476 percent over the last 60 months or
the last five years so the stock has
been in a nice uptrend very nice off
trend over the last five years and it's
even come up a good amount in 2017 alone
now Amazon is considered a mega cap
stock with a market capitalization of
430 billion and they do not pay
dividends which is kind of strange which
may seem strange to you as a company
that's large for them not to pay
dividends but it largely has to do with
the way they run their business and that
will also explain why their p/e ratio is
so high so I'm going to talk about that
in a second - what's interesting about
this is when you see a stock that's way
up you generally expect to see a lot of
short interest on that stock those are
people who are bearish on a stock
expecting the stock price to go down
however short interest on Amazon as of
March 31st 2017 is four million seven or
thirty eight thousand seven hundred
seventeen shares or roughly one percent
so it really is a short interest on
Amazon is next to nothing
AMD's profit or sorry hip I'm always
talking about a MBA
mix-ups to their amazon the profit
margin is one point seven four percent
so that also maybe seems strange to you
for such a large company with a market
cap that large to have a profit margin
so slim like that but this is basically
because Amazon's business model has them
operating close to break-even and that's
why they're so innovative because
they're re investing so much money into
their business and all the different
endeavors and I think largely to this is
the way they operate because they don't
want investors to get used to the rings
and the dividends because they don't
want investors to you know bail on
Amazon if earnings go down so I think
they operate as close to break-even as
possible and they do this on purpose and
we're seeing this from a lot of
businesses now and you even see
businesses like snapchat where they're
operating at a significant loss just
because they're investing so much in
innovation and I think that's what's
going on here with Amazon so while my
p/e ratio of 184 seems to be sky-high
it's kind of out of touch because you
have to understand this is how Amazon
intentionally operate their business now
the forward p/e is 73 so that's a little
bit more realistic but again that's
based on perceived future earnings from
Wall Street estimates so that's not
anything you can bank on now stocks like
Amazon Facebook Google and Apple are at
all-time highs right now you know in
most cases you know you'd say you don't
want to invest in a stock but it's all
the way up however despite the stock
being sky-high investors are bullish and
short positions are miniscule so even
though the stock is at all-time highs
and I've talked about Apple as well in
the past haven't really touched on
Facebook and Google but I see Apple and
I see Amazon as great investments right
now so why do I see Amazon as a buy I
think I have six reasons total over the
first two right now number one is the
fact that online retail sales will
double by the year 2020 so this was kind
of shocking to me you think of Amazon at
this huge player out there but the
reality is that ninety one point seven
percent of US retail sales are conducted
off line which is crazy to me because I
would have thought it would be a lot
more but ecommerce is still less than
10% of all the retail sales that are
going on so there's still a large amount
of room
for them to grow now eMarketer estimates
that global retail e-commerce sales will
increase to more than four trillion in
2020 up from under two trillion in 2016
so from 2016 to the end of 2020
basically that figure is going to double
which is a very significant movement for
that so we are seeing a mega trend right
now a consumer shopping trends shift and
I kind of talked about this in my video
I did on the retail meltdown that's
going on right now and if you guys want
to see that video I'll link up to it at
the end but basically talking about how
retail is just getting destroyed right
now while companies like Amazon are
doing phenomenally and a lot of that has
to do with a trend shift that's going on
with the consumer shopping habits but
basically of all the companies out there
I mean Amazon will benefit from this
trend shift more than any other company
so seeing more people spending money
through e-commerce than offline retail
is a big plus for Amazon number two is
the fact that Amazon is actually
becoming the shopping search engine what
I mean by this is bloom reach found that
55% of consumers begin shopping related
searches on Amazon and this is up from
44% the previous year so it's up
basically 144 to 55% so 11% more people
are now beginning their searches on
Amazon so instead of going to Google and
let's say you're buying a blue shirt or
something like that instead of going to
Google and saying blue shirt they're
actually starting their search on Amazon
which is really interesting it doesn't
mean that people are beginning to
associate Amazon as the shopping search
engine more so than they are Google
which we see here shopping related
searches on Google felting 34% to 28% in
that same time frame so what we are
seeing here is a rapid paradigm shift
where people are now associated Amazon
as big shopping search engine which is a
huge plus for Amazon which means that
they're just going to be getting more
and more business over time now shopping
related searches on all of the retailer
sites fell from 21 to 16% as well so
it's very clear that all this search
traffic went to Amazon instead okay so
the third reason is I think Amazon stock
is a buy is basically it has to do with
the way Amazon
rates and what their business model is
and Amazon basically stands to disrupt
industries that aren't serving customers
as well as they could be so Amazon is
simply better at retail they're cheaper
they're working on being faster and they
have a better selection no longer do you
have to go to a store and worry about
over they have one I need their and
they're just doing everything they can
to serve the consumer and the customers
the best way possible
and this can be seen even an Amazon
mission statement which is we seek to be
earth's most customer centric company
and many of us would agree this is
exactly what Amazon is it's very
convenient for us and personally I use
Amazon almost exclusively for my
shopping and I I've never been groceries
I do buy groceries at the store but
they're even in a position where they're
starting to plan out or they're working
on disrupting grocery stores as well so
basically Amazon is disrupting
traditional businesses left and right
particularly the ones that are not
serving customers in the best ways
possible so just a couple of examples of
this is they're now getting into
groceries and selling groceries and also
the original video content and what's
amazing to me is that they are actually
spending more than HBO on original video
content so this just goes to show when
some people wonder why they're you know
breaking even basically with their
business it's because they're pumping so
much money into what they already have
to be to give the customers and the
consumers the best possible experience
so the fact that Amazon is spending more
money on original video content that HBO
is incredible to me and they're also
even beginning to disrupt delivery
services so FedEx UPS they may want to
watch out what Amazon has up their
sleeve number four is the fact that
Amazon is still founder led so Jeff
Bezos founded Amazon back in 1994
embezzles holds roughly 83 million
shares of Amazon or 18% outstanding
shares of what Amazon has out there so a
bezel is heavily invested in success of
his company and founder led companies
tend to be more innovative and
financially successful so that's also a
big plus for Amazon right there number
five is the fact that Amazon has a low
risk of disruption a very low risk of
disruption that is because Amazon has
intellectual property
network of fulfillment centers worth
billions of dollars and who could really
afford all the infrastructure as well as
the money that we need to go into all
these behind the scenes stuff that goes
on with Amazon to even come close to
disrupting Amazon's business the only
one that comes to mind is Walmart and I
know Walmart is competitive with Amazon
but I don't think I don't see Walmart
being on part of what Amazon has to
offer especially because Amazon is
involved in so many different areas now
unless Walmart goes out and starts
making a Walmart video service where
they're offering streaming services
which is just something I don't see them
doing so maybe with the online shopping
Walmart does have a slight copy of
competitive edge with Amazon maybe they
are competing but I know personally I've
never purchased anything from Walmart
and I mean either them in the store I
buy stuff in the store but I've never
purchased anything from Walmart online
but I'm curious is that something you
guys do again a lot of people have
mentioned that Walmart is in some ways
competitive with Amazon as far as online
shopping and e-commerce goes but
basically you guys amazon fulfillment
centers are cost me assets and Amazon
has 82 fulfillment centers already with
31 more plans so the more facility
sectors they have that will result in
faster shipping as well as lower prices
and the faster shipping and lower prices
make them more competitive so unless
somebody has billions of dollars kicking
around and they're looking to go go
ahead to have with Amazon there's a very
low risk for them being disrupted or
knocked off this pesto they have right
now number six is a big one too and
there's a lot of reasons why Amazon
Prime is awesome for Amazon but I'm just
going to give the main reason that I see
so nearly half of all US households have
an Amazon Prime account now and I even
read somewhere now that an Amazon Prime
account is not more common in a
household than a landline telephone
services which is crazy to me to see how
fast that trend shifted so this $99
annual membership in a big win for
Amazon so why do I think Amazon Prime
makes amethyst occupy that is because
Amazon Prime makes many consumers
exclusive to amazon including myself so
I have an Amazon Prime account and if I
can find on Amazon I do the reason is I
want to get the best bang for my buck so
you obviously get that free shipping
available and so for me it makes sense
to use that
to get the best bang for my buck so if I
can order something from Amazon and it's
a little bit less money than what I
might pay at Walmart or Best Buy
something like that I will absolutely
order from Amazon because I'm getting
the free shipping and that way I'm
getting the best bang for my buck
because I'm paying for that service
anyway I might as well use it and that
is huge for Amazon because it makes
customers and consumers exclusive to
amazon stores of shopping goes anyway
guys those are the reasons that I see
Amazon stock as a buy right now and like
I said this is just my opinion so it's
not a fact that all the stock is going
to go up but based on these facts and
many other reasons I 100% see Amazon
stock as a buy personally I'm not
invested in Amazon right now as a lot of
you know I'm heavily invested in AMD but
it's something that I'm going to keep an
eye on in the future and I would love to
hold Amazon if I had the money kicking
around right now I would absolutely have
some money in Amazon stock but anyways
guys that's pretty much all I got for
this video if you enjoyed it please drop
a like and if you're new to the channel
please subscribe as well to be notified
of any future uploads and if you guys
want me to talk about any other
companies I know I have a lot of people
who personally ask me like my opinion on
a certain stock a lot of the times I
have you guys asking me about small cap
or penny stocks and I really don't talk
about that on this channel so for me it
only makes sense to make a video about a
stock or a company that a lot of people
are talking about so if you have any big
companies that you guys want me to talk
about I definitely plan on talking about
Facebook and Google as well but if
there's any other ones that you guys
would like to see please drop me a
comment below and also let me know what
your opinion is of Amazon stock as well
but that's pretty much all I got for
this video I thank you guys for watching
you

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