Amazon.com, Inc. (AMZN): The e-Retailer’s Glass Is Definitely Half Full (or More)

Page 1 of 2

Is Amazon.com, Inc. (NASDAQ:AMZN)‘s corporate glass half-full or half-empty? I take the positive side of the debate.

Amazon.com, Inc. (NASDAQ:AMZN)Amazon.com, Inc. (NASDAQ:AMZN) chief Jeff Bezos recently sought to reassure his shareholders that all is well. In a recent letter to stockholders, he stressed, “As I write this, our recent stock performance has been positive but we constantly remind ourselves of an important point — as I frequently quote famed investor Benjamin Graham in our employee all-hands meetings: ‘In the short run, the market is a voting machine but in the long run, it is a weighing machine.’”

That’s no doubt uplifting but the thing is, skeptics might just be weighing Amazon.com, Inc. (NASDAQ:AMZN)’s long-term prospects ever since they came across the findings of an intriguing Forrester research report.

Forrester polled 4,500 adult U.S. online and discovered that in all prominent consumer classifications — except for travel — shoppers said that visiting a store counted as the most critical piece of research before making a purchase.

Hmmm. What do those data portend for Amazon.com, Inc. (NASDAQ:AMZN) – and have we amateur sociologists actually been wrong all these years about what drives the passion of the American consumer?

According to conventional wisdom, we have. To be sure, the U.S. Census Bureau statistics note that e-commerce buys represent a scant 5% of the nation’s total retail sales.

Don’t panic, Amazon.com, Inc. (NASDAQ:AMZN) shareholders! It should be noted as well that — and can’t you see the sunny Mr. Bezos beaming as he reads these data? — this percentage has jumped more than three times the level of the dawn of the 21st century and it looks like consumers continue to warm to electronic commerce purchases as they become more familiar with the practice.

The half-full/empty conundrum can seem to be everywhere when the discussion centers on Amazon.com, Inc. (NASDAQ:AMZN)’s performance and prospects. If you’re a stockholder, you already know this by heart, right?

Remember, Amazon’s stock price is up about 9% year to date while the benchmark S&P 500 index has jumped 11%. Year over year, Amazon has added 45% compared with the S&P’s figure of 15%.

For his part, Bezos doesn’t let his judgment get clouded by fits and starts in the stock market, which is actually good news for his stockholders. He displays an interest in managing beyond the three-month quarterly earnings cycle, and this, too, should mightily reassure Amazon holders. Chasing short-term stock market gains is a sucker’s game, whether you’re an individual trader or the head of Amazon.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!