Amazon Are The Ideal Long-Term Investment: Whether you are a full-time investor or a newbie (who started learning about the stock market following advice from the greatest and richest leaders of the world.), Amazon stocks are a safe place to invest. Here we discuss why you should invest in Amazon and never sell it in the future.
1. Innovative Culture
Started as a book-seller, Amazon constantly has the culture for experiments, innovations. It always takes the risk to step forward to success. However, Amazon failed at many projects like high-end jewels, travel, and fire phone. But nothing stopped it from taking a risk, which makes the companies culture unique.
2. e-commerce Growth In Future
The e-commerce market is booming rapidly worldwide. The alone US reported 11% of its retail sales are online, and the number will increase in the coming years. Amazon has almost 5% of the share, which will certainly increase over time.
3. Massive e-commerce Moat
Amazon has a great buying power, delivery structure, and third-party marketplace, which has around 50% of selling units increasing its moat. But the main reason for the high number is Amazon Prime. This has over 150 million members globally, which provides one or two days of free shipping to members, which widens Amazon moat.
4. Long Term Growth
AWS has a $41 billion annual revenue, with 33% growth over a year. AWS boss Andy confirmed the business to grow around $3.7 trillion in the global market, which has a long-term opportunity in the future.
AWS has the highest public cloud market, which scales the business with substantial revenue in the market. However, Microsoft Azure and Alphabet’s Goggle Cloud is just behind AWS in the list.
6. Digital Advertising
Dominated by Alphabet and Facebook, Amazon has a third place in eMarket estimating $14 billion in revenue. As the global market estimated to grow to $518 billion by 2023, which is a great place to invest for the future.
Along with one or two days free delivery on Amazon prime. This also offers same-day delivery for wholesome foods. This service will help Amazon to grow its business worldwide.
8. Go Grocery
Amazon launched Amazon Go Grocery and started selling it in 2017. Also, food has a massive $746 billion market in 2018, which will grow day by day.
9. Global Logistics
Amazon lease cargo jets, truck fleets to offer an amazing delivery system worldwide. This will directly be competing with companies like UPS and FedEx.
In and after this pandemic situation, there will be an increasing number of Healthcare. Amazon has a big ambition in this. In 2018, it acquired $735 million of an online pharmacy Pillpack which will benefit it in fur future.
11. Long-term Profit
Amazon is investing and increasing in sortation centers, fulfillment centers, investing in geographical expansion, including billions in India. Besides, this will spread the margin of profit over time.
12. Jeff Bezos As Leader
As Warren Buffet said, we certainly believe Jeff Bezos as “the best CEO in America.” His ability to create a giant like Amazon from an online book-selling startup is remarkable. Similarly, it gives us a clear picture of Amazon’s future as tech-giant.
For all those reasons, one should invest in Amazon.