Several news reports that came out in the past few days have shined a light on the renewed resiliency in Amazon.com Inc.'s stock price. According to the SmartStops Risk Signals analysis, [AMZN] is up 1.55 percent for the day on September 4 and is poised to go higher, so long that the positive perspective surrounding the company prevails.
Bloomberg Businessweek revealed that Amazon is making a big play for warehouse space this year, seeking to expand its operational capacity in order to keep up with surging demand for its digital marketplace. Since 2010, the company has spent nearly $14 billion on 50 warehouse properties, giving it an edge over its erstwhile competitors like Wal-Mart and eBay, both sites that have different working models but are still able to snag a slice of this growing industry.
Its secret, according to an interview with Amazon's worldwide operations guru, Dave Clark, is an outlook that calls for constant growth opportunities. Activities in emerging economies like India and China have allowed the company to provide more robust revenue sources, even amidst the backdrop of a global economic downturn.
Other investments have allowed the business to speed up its turnaround. Clark pointed out in the interview that Amazon recently acquired Kiva Systems, which specializes in robotic packaging hardware and software. Because of this, its warehouses are becoming more efficient, promising faster return times and fewer mistakes.
Overall, these developments are price-positive for [AMZN], as the company appears to be taking its earnings and investing wisely. Of course, any consumer-based enterprise is going to be at risk of a slowdown if widespread purchasing power drops. This is why the SmartStops suite of portfolio management tools is vital to investors, allowing them to watch the market and adjust their positions when necessary. SmartStops have saved our clients nearly $14 per share since it last entered a Risk State, so contact us today to learn more!
Categories: Stock News