The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
If most investors were given the opportunity to buy only one stock, most will probably tell you they’d choose Amazon.com (NASDAQ: AMZN).
Other stocks may seem more alluring with their new growth strategies or dividends. However, Amazon still has a lot in it that investors seem to have confidence in, as well as an attractive stock pricing recently.
Amazon is more than an e-commerce company
Amazon began as an online bookstore that later transitioned into the most prominent online marketplace in the world, with operations in most parts of the globe. However, e-commerce is not the only thing under Amazon’s operations.
Let’s look at a few (emphasis on few):
- Amazon Web Services: A massive cloud computing platform.
- Kindle: One of the biggest e-reader platforms out there.
- Audible: Audiobook platform and app
- Ring: Home security and hardware services
- Whole Foods Market: An upscale grocery chain
- Zappos: Online footwear retailer
- Alexa: An AI-powered personal assistant.
- Amazon Prime: Membership program that offers video streaming, books, shipping benefits, music, & much more.
- Twitch Interactive: The most popular online streaming platform.
And that’s just the beginning of a long list. It is also safe to say that Amazon plans on expanding it.
Despite its size, Amazon has growth potential
Amazon is currently evaluated at around $1.6 trillion dollars, making it one of the world’s most valuable companies. Despite its value and scale of operations, the company can still grow at an incredible rate. Last year alone, the company’s total revenue grew by 38%, and it is likely to keep growing in years to come.
The company has long since begun its process to stop relying on UPS, FedEx or the USPS to do its work. Amazon Logistics, Amazon’s transportation network, has been pouring resources into its centers and increasing its delivery capabilities. At this point, Amazon might even deliver for other companies.
With the pandemic, Amazon has taken a shot at expanding its Amazon Pharmacy operations. With everyone locked indoors due to policies, people no longer need to put themselves at risk to buy their prescriptions.
Speaking of the pandemic, the situation has put a lot of stores out of business. This is an excellent chance for the company’s newer Amazon Fresh outlets to find new potential real estate as it becomes available for future locations.
The price is reasonable
Amazon is a growth stock and is trading at a reasonable price. Many say the stock has been overvalued most of its lifespan but has consistently surpassed all expectations (and will continue to do so). Those who wait with Amazon have reaped enormous benefits over the years.
Give Amazon some love, and if not, at least some consideration. You should always consider Amazon as a potential investment.