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There is still growth ahead for Amazon

How can one possibly buy shares in Amazon now, after the stock has done so well? We get this kind of question from time to time, from new clients. The answer is, we expect them to go on doing well, and growing even further.

According to a RMB-Morgan Stanley report that I was sent, the total addressable retail spend in the US is about $2.5 trillion. Of that, only 22.4% is currently online, via e-commerce channels. However, about 70% of the growth in that overall number is from new e-commerce spend, mostly due to Amazon's Prime service.



Amazon's new focus is on motor vehicles, groceries, furniture, media content and healthcare. Since 2011, it has invested over $150 billion worldwide in its payment, fulfilment, transportation and technology infrastructure. The main goal has been to shorten the delivery time to more households. Of course, the build out in other countries has only just begun.

It estimates that it has created more than 900,000 jobs around the world. In addition, in 2017, more than 300,000 small and medium-sized business in the US started selling on Amazon.

The only reason not to buy more Amazon shares is if they already form a large part of your portfolio.


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