Historically, tumultuous times offer some of the best opportunities to buy stocks, and the market's recent mess surely qualifies. There are very few companies that investors believe will flourish in this economy, but many think online retailer Amazon.com (Nasdaq: AMZN ) is one of them.
In our Motley Fool CAPS community, nearly 72% of the 4,267 investors rating the company are bullish, so there's no shortage of reasons why Amazon will thrive, three of which I've highlighted below.
But here at the Fool, we're all for looking at both the good and the bad sides of an investment. Once you're done with this article, you can read the case against the stock, weigh in with your own comments below, or rate Amazon yourself in CAPS.
While some bricks-and-mortar stores like Sears Holdings (Nasdaq: SHLD ) and Macy's (NYSE: M ) have struggled, Amazon has continued to perform well despite the economy. It's had strong Kindle sales and growing third-quarter sales and earnings, and some investors expect that strength to continue. Analysts have been raising targets lately, and some investors think the company's long-term potential outweighs the effects that competition is expected to have on margins.
2. Leg up on the holidays
Not only did Amazon top the charts as the most-visited website on Black Friday, topping the retail websites of Apple (Nasdaq: AAPL ) , Best Buy (NYSE: BBY ) , Target (NYSE: TGT ) , and Wal-Mart (NYSE: WMT ) , but also it scored the top spot on Cyber Monday. Overall online retail sales in the U.S. for those days grew over last year's numbers, and some investors believe that momentum will continue into the holidays and possibly further.
3. Cash, cash, and more cash
In addition to Amazon generating consistently positive free cash flow in recent years, its operating cash flow and free cash flow have skyrocketed for the trailing 12 months, even in the midst of a bleak retail environment. It's pulling in more free cash flow than its net income, and some CAPS members like potential opportunities that Amazon could take advantage of with its growing cash balance.