Want to get rich like Jeff Bezos? I certainly can’t guarantee that you’ll every achieve the wealth of the famous Amazon (NASDAQ:AMZN) CEO. However, taking a well-timed position in AMZN stock shares could be quite lucrative over the long haul.
In fact, there aren’t many better ways to invest like an e-commerce tycoon than owning shares of AMZN stock.
Yet, some folks will contend that the stock price is just too high.
Sometimes they’ll wait for a dip in the share price, only to hesitate when it actually happens.
So here we are in September, and you got the dip you’ve been waiting for. Moreover, Amazon is a dominant company that’s constantly expanding into new ventures.
Over the years ,it has continued to see the kind of success you’d expect from the stocks in Growth Investor.
What more could you want, really?
AMZN Stock at a Glance
At the beginning of September, AMZN stock was riding high on a wave of bullish sentiment. The rebound off of the mid-March lows was truly a sight to behold. But then, no stock goes up in a straight line and there will inevitably be minor corrections along the way.
Thus, while AMZN stock was above $3,500 per share on Sept. 2, it dropped quickly and nearly closed at $3,100 on Sept. 11. Traders of this stock really hadn’t seen a drop of that magnitude since AMZN bottomed out in March.
One can only imagine that some novice investors must have been shaken out during this price dip. That’s unfortunate as moderate corrections can be scary, but they’re just part of the process. Much of the time, it’s due to institutional investors taking profits after a steady run-up in the stock price.
In other words, we shouldn’t assume that the price dip means there is actually something wrong with the company. If anything, it’s a good time to jump on the escalator, so to speak, as AMZN stock is still trending upwards overall.
Some Food for Thought
When Amazon bought out Whole Foods, this move might have been considered speculative at the time. Yet, today we can view it as one of Amazon’s most successful ventures. It’s the sort of forward thinking that’s behind all of the greatest growth stocks.
“Grocery delivery continues to be one of the fastest-growing businesses,” Amazon stated recently. And now, the company is combining the grocery business with what the company does best: online order fulfillment.
Specifically, Amazon is opening an online-only Whole Foods grocery store in Brooklyn, New York. Amazon commented, “We’re thrilled to increase access to grocery delivery. It’s never been more important.”
It will be important for the local economy, no doubt. That’s because Amazon hired hundreds of workers who, according the company, will be “100 percent dedicated to facilitating grocery delivery.”
New Geographies, New Opportunities
Even beyond the move into online grocery order fulfillment, Amazon is also seeking to expand geographically. In particular, the company is reportedly in talks to possibly buy a $20-billion stake in Reliance Retail Ventures Ltd.
That company is part of Indian conglomerate Reliance Industries. If the deal goes through as planned, Amazon could own a 40% stake in Reliance Retail Ventures. This, in itself, would diversify Amazon’s business in a big way and would turn a competitor into an ally.
If the deal goes through, Amazon could profit from Reliance’s interests in supermarkets, consumer electronics, fashion outlets and more. This wouldn’t be Amazon’s first investment in Indian businesses, but it would be a major coup in an emerging market with a very large population.
The Takeaway
If you’ve been sitting on the sidelines to buy a AMZN stock, now’s as good an entry point as you’re probably going to get in the near future. It’s your chance to invest like an e-commerce tycoon, even if you don’t have Bezos’ bankroll.
— Louis Navellier
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Source: Investor Place