[NASDAQ: AMZN]: Jeff Bezos may have announced that he is getting a divorce, but this in no way impacts on the prospects of Amazon. In fact, analysts are getting even more bullish on the prospects of this company. One analyst has even called the company a profit machine.
Amazon’s profitability is coming from AWS as well as its growing advertising business. These areas of the company are growing at a much faster rate than its fixed costs. With such prospects of growth, Amazon’s chances of hitting higher valuations than its $2000 share highs are quite high. This means that Amazon (AMZN) could be cementing its position as the world’s most valuable company and hold there for years to come.
These prospects make Amazon a solid buy for any investor looking to make good returns in 2019. That’s because, as long as the company is presenting high growth figures, its value in the market will grow as well. There are many other factors supporting Amazon’s growth, key among them being its dominance of online retail. The company has a near monopoly of online retail, and with the growing preference of online shopping all across the world, Amazon (AMZN) is likely to keep giving good numbers going into 2019 and beyond. Amazon (AMZN) has also been increasing its foothold in the retail business. This is a high growth market that will play into Amazon’s growth all through the year.
The company is also taking steps to entrench its position in online retail. For instance, it is rolling out a program that will see it send free samples based on consumer buying patterns. Though this is raising privacy concerns, it could serve to cement the company’s position in the market and play a huge role an even bigger role in the global retail market.
Amazon could also benefit immensely from positive news about relations between China and the U.S. American and Chinese negotiators in Beijing have given hope things are going on well, on the negotiations front. If this trade war comes to an end, it could spur growth in the global economy, and companies like Amazon (AMZN) could see their values soar. That’s because Amazon draws in customers from all across the world, and could benefit immensely from more open global trade especially in China.
At the time of writing, Amazon (AMZN) is trading at $1659.42. It closed Wednesday’s trading up by 0.17%. With the Fed indicating that it could slow down on rate hikes, the entire market could continue in yesterday’s positive trajectory. This puts strong companies like Amazon (AMZN) in a good position to record positive numbers once the markets open. Interest around it will also be driven by the news of Bezos divorce, which has been on the headlines for the better part of the day.
In essence, it is a company that is worth keeping an eye on both in the short-term, and in the long-term for investors looking for growth.