Amazon have both frustrated and surprised investors by focusing on revenue growth to the detriment of improving margins. The outlook over the next few years seem to be positive for Amazon as the company have introduced new sorting centres to cut delivery times and offer improved service to clients. The retailer has just introduced free same-day delivery for Prime subscribers in approximately 500 cities in the U.S. Despite less than stellar earnings figures in recent years, the stock maintains a loyal investor base. However, with continued diversification of the business, Amazon stock still looks like an interesting investment.
Investors Notes:
- Amazon’s Prime subscribers are estimated to total 41 million in the U.S. where the company is rolling out the same-day delivery service.
- Amazon is reported to be providing its own brand of produce to include various daily essential such as milk and cereal.
- Amazon stock has already risen by 39% despite increasing competition from Google’s buy button and Walmart’s $50 per year loyalty scheme.
- From a technical perspective, there appears to be the beginning of a flag continuation pattern developing in the upward trend.
- The 50 day moving average indicates momentum for the stock is positive.
- Banc De Binary analysts predict that Amazon stock will continue the upward trajectory.