Amazon Inc.

Amazon.com, Inc. (AMZN) – Buy

I added to my position in Amazon.com, Inc. (AMZN) for the 4th time this year today at $1789.71. It is now our largest position at this time.

Most of the same reasons for my previous purchases still stand. Based on our own sales of Wondermugs and other products on Amazon.com over the holiday season which were significantly better than last year, I expect the next report to be better than they expected. Of course there are risks to this such as Amazon’s increased re-investment in services, which I’m fine with if it makes the business stronger in the long run.

I also believe that their revenue/profits from advertising will be good as we spent a lot ourselves on ads, much more than last year. Amazon added more ad options I believe and they started providing more options in the backend and transparency more like Google Ads provides which should help increase budgets from advertisers like myself.

If the price continues to stay at this price or drops further I may add more to my position.

Amazon.com, Inc. (AMZN) – Buy

I added to my position in Amazon.com, Inc. (AMZN) on 11/15/2019 at $1735.27. It is now our 2nd largest position at this time.

Most of the same reasons for my previous purchases still stand. Based on our own sales on Amazon.com and expectations for this holiday season, I expect the next report to be better than they expected. Of course there are risks to this such as Amazon’s increased re-investment in services, which I’m fine with if it makes the business stronger in the long run.

If the price continues to stay at this price or drops further I may add more to my position.

Amazon.com, Inc. (AMZN) – Buy

I added to my position in Amazon.com, Inc. (AMZN) today at $1,757.76. It is now our 3rd largest position at this time.

Most of the same reasons for my previous purchases still stand.

We did quite well selling products for our Wondermugs business on Amazon.com and have increased our advertising spending to get our listings rank higher in Amazon’s shopping searches.. We expect to sell significantly more mugs this year than last year.

Some overall threats to Amazon are:

  • Amazon.com’s will have more margin pressure from increased investment/competition from competitors such as Walmart, Costco, and Target.
  • International expansion holds no guarantee of matching success as the US Market
  • AWS is facing increased competition from strong competitors such as Google and Microsoft.
  • Government pressure due to size and influence.

However, the positives are:

  • Amazon.com dominates the overall e-commerce market with sizeable international growth opportunities for it’s marketplaces, advertising and devies
  • Strong growth in devices to help keep and bring in new customers.
  • Strong favorability with Generation Z.
  • Increasing number of shoppers initiating their searchers with Amazon instead of Google
  • Increasing advertising share and signups from 3rd party sellers on their platform, which helps the ability for Amazon to increase profits while reducing costs/burdens of selling inventory directly.

The stock currently trades at a PEG of 1.1 which is quite good and makes for a good buying opportunity.