Has Amazon.com, Inc. (AMZN) Become the Perfect Stock? – Netflix, Inc. (NFLX), Rackspace Hosting, Inc. (RAX)

Moreover, with so many fronts to defend, Amazon faces competition on all sides. Netflix, Inc. (NASDAQ:NFLX) has reinvigorated its competing video-streaming service with huge content deals that will force Amazon either to pony up for its own premium content or face permanent second-class status. Retailers are ramping up their own websites to compete on the retail front, and multiple failures of Amazon Cloud Services last year have inspired Rackspace Hosting, Inc. (NYSE:RAX) as a primary hosting alternative, as well as countless other competitors in the growing Big Data space.

For Amazon to improve, it needs to make good on Bezos’ assertion that a transition to higher-margin profitability is coming. Otherwise, Amazon.com, Inc. (NASDAQ:AMZN) may keep growing yet never produce the bottom-line results that would make it anything close to a perfect stock.

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No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you’ll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.

The article Has Amazon.com Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Netflix, and Rackspace Hosting and owns shares of Amazon.com and Netflix.

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