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I recently bought some AMZN stock and did it purely as a defensive move.
However, roughly a week or so later, the stock has already gone up by about 10%.
Now I’m wondering if I should have bought more.
Should I Buy More Amazon in 2018?
A first question I often ask myself about an investment is whether I understand the company.
I think I understand Amazon. I’m a Prime Member and I certainly use the company regularly…
Check that box.
But the stock has almost doubled in the past year and could go higher in the next few days.
Amazon will report Q4 earnings on February 1st, 2018. They are expected to report a blowout quarter.
So Is It Too Late to Buy Amazon?
If you are planning on buying and holding, the answer is probably no.
It is not too late.
Indeed, one could argue that the only reason to not buy Amazon as a long term hold is the FOMO (feeling of missing out) on owning the stock for the past 20 years.
That said, will Amazon be around 20 years from now?
Chances are good it will, unless it is broken up for being too powerful.
Most analysts have high hopes for Amazon. The most bullish, D.A. Davidson analyst Tom Forte, recently raised his 12-18 month price target on Amazon to $1,500-1,800 per share.
E-commerce sales currently represent around 9% of total retail sales in the U.S. Of that, Amazon represents almost 55% of sales.
If e-commerce, as a portion of our overall shopping continues to grow, Amazon could go much higher.