The data isn’t all in just yet but all indications are that Amazon.com Inc. (NasdaqGS:AMZN) crushed it on Black Friday and Cyber Monday. In fact, online shopping in general crushed it.
Consumer spending last Monday may top $3.45 billion, according to Adobe Digital Insights.
That’s easily the highest number we’ve seen yet and a sign that the economy is stronger than people think.
Still, there’s a note of caution.
Shares of retailers like Walmart Stores Inc. (NYSE:WMT), Kohl’s Corp. (NYSE:KSS) and Target Corp. (NYSE:TGT) also beat the record books and that’s got a lot of investors really excited because many believe it means the big name traditional brick-and-mortar stocks are capable of competing.
DON’T fall for it!
I know those very same companies have all made big improvements to their online shopping apps and that they’re dabbling in mobile payments but those things amount to little more than a feeble attempt to keep up.
They’re simply moves intended to do one thing…stave off Amazon.
It’s fashionable to bat around the notion that specific companies are “Amazon-proof” but there’s no such thing. Any investor who thinks there is, is deluding themselves.
Five years ago, people would have said that Whole Foods Market Inc. (NasdaqGS:WFM) had nothing to fear from Amazon because it sold food and other perishable items. Now, Amazon owns the chain formerly referred to by shoppers as Whole Paychecks.
And, not surprisingly, many formerly uber-expensive items are actually cheaper than you can buy them in the big-box retailers or traditional bricks and mortar groceries.
Still, there is ONE company that can compete with Amazon and one deal that I think is going to happen as the battle begins.
Here’s what you need to know.
- There’s no such thing as an Amazon-proof company despite what Wall Street wants you to believe. It’s only a matter of time before the old guard gets “Amazoned.”
- There is, however, one company that can take on Team Bezos and may actually – dare I say it – win. Along the way, I think they’re going to have to make one or more key mergers that catch investors by surprise… and us potentially by “profits.”
- Velocity is a concept I frequently discuss. It means that when a stock is going up, it usually stays moving, gaining momentum, and doesn’t easily come down. With special recommendation alerts, you’ll have the chance to follow these upward moving stocks, buy them when we see the sign, and sell them when it’s time… It’s that simple.
Keith Fitz-Gerald [ad#mmpress]
Source: Total Wealth Research