Amazon.com, Inc. (NASDAQ:AMZN) long-term prospects may look glimmer to a number of investors but not to Piper Jaffray senior analyst, Gene Munster, who maintains it is the perfect time to hold a long position on the stock. The stock has been an underperformer for the better part of the year with CNBC’s, Joshua Brown, maintaining it will be a dead stock should it sink further, to the $280 trading levels.
Munster argues that Amazon.com, Inc. (NASDAQ:AMZN) prospects look brighter than before as things always look darkest before dawn, seen by many investors shunning the stock in the recent Past. The analyst bases his arguments on Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOGL), which he believes only started performing when Wall Street had lost hope on them.
“I think if you take a look at what they are building and think about the opportunity they have ahead of them, not only with e-commerce but with EWS. I think this is a great opportunity to own the stock,” said Mr. Munster.
Munster continues to reiterate his confidence on Amazon even as Wall Street sentiments continue to change in the wake of the company opting to pursue growth opportunities at the expense of shareholder value. Munster admits that Amazon.com, Inc. (NASDAQ:AMZN) has been an underperformer this year but believes investors have lost the bigger picture on the company’s long-term prospects.
“We think there is going to be fraction improvements in their margins, which should be extrapolated to more improvements down the road that the essence of the bet we are making,” said Mr. Munster
Amazon.com, Inc. (NASDAQ:AMZN) unveiling a one-hour delivery service is one of the products that Munster believes should do more than enough in healing the margin problem that investors have been complaining about. The unveiling of the one-hour delivery system coincides with the shopping frenzy that has come to be known of the holiday season where the company hopes to achieve impressive sales with, going forward.
CNBC’s Stephanie link also agrees with Munster sentiments reiterating that the stock remains attractive at the current margins as a long term investment heading into 2015
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