Why I Would Buy Amazon Stock Today

Nov. 09, 2013 UPDATE: Since I wrote this post, Amazon is up 40%.

I wrote this opinion over on my Motley Fool CAPS profile, and feel strongly enough about it to share here.

Today, Amazon’s share price is about $258. It has a price-to-earnings (P/E) ratio of 316, which is enough to at least cause a second glace.

But there’s more to investing than a single metric, and I happen to believe AMZN has a long way to go before it hits its ceiling.

Here’s why:

Long term, they just have too much going on. Ignoring their hugely popular, widely successful cloud commuting enterprise, let’s consider online commerce alone.

US eComm sales totaled $194.3 billion in 2011. It’s expected to grow another 12-15% in 2012.

Guess who’s at the top of the heap (U.S.)? AMZN did $28.7B in online sales in 2011 – a 56% leap from year prior. Think they’ll do even better in 2012? You bet.

Online merchants are CONSTANTLY battling against Continue reading