Trading Amazon: Here s What I m Thinking Now The big doubt in the back of my head is that Jeff Bezos wants to take his eye off of the (this) ball to do other things.
Feb 03, 2021 | 11:03 AM EST
There may have been a better stock in percentage terms at some point in history. I hear tulip bulbs were pretty hot there for a while. Did maybe someone create a business of delivering them to people s homes? I don t know. Apple (AAPL) has been called the greatest consumer electronics company in history more than once. When I was a kid, I was pretty sure that McDonald s (MCD) was the greatest company of all-time. Not only did McDonald s sell what at the time seemed like great cheeseburgers, but in conjunction with Coca Cola (KO) , Levi Strauss (LEVI) , and Ronald Reagan they pretty much won the Cold War. That was then.
Wide-moat Amazon (AMZN) reported strong fourth-quarter results, including material upside to revenue, an EPS blowout, and upside to its revenue outlook for the first quarter. Amazon remains well positioned to prosper from the shift toward e-commerce during the COVID-19 pandemic (with particular strength in groceries and staples) in the near term, but also the secular shift toward e-commerce in the long term. We are particularly impressed by margin performance, which we think is a preview of Amazon’s earnings power as COVID-19 costs roll away and the company grows into its 50% fulfilment capacity expansion from 2020.
Amazon also announced that CEO Jeff Bezos will transition to the role of executive chairman in the third quarter and will be replaced by Andy Jassy, CEO of AWS. We note Mr Bezos will remain actively involved with the company, and Mr Jassy has been at the company for 23 years and was a driving force behind the foundation and growth of AWS. We are raising our fair value