Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



When Will Amazon Begin Reporting Profits? (NASDAQ: AMZN  ) reported a third-quarter loss of $0.09 per share last week while Wal-Mart (NYSE: WMT  ) posted $1.24 in earnings per share in its most recent quarter, yet Amazon trades at $360 per share and Wal-Mart at $77. What gives?

In the video below, Fool contributor Daniel Sparks explains why it's not earnings that get investors excited about Amazon. Earnings and dividends might be the story for Wal-Mart, but not for Amazon, he says.

E-commerce accounts for just 8% of U.S. retail sales, according to Forrester. This $230 billion e-commerce market is expected to grow to $370 billion by 2017. As the world leader in e-commerce with still plenty of runway ahead of it, Amazon is still a growth stock -- and it should be treated as such, says Daniel.

As a growth stock, Amazon is driven by other metrics and not earnings, Daniel explains. Wal-Mart is in a whole different ballpark.

A deeper look into Amazon's massive opportunity
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of the last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2703093, ~/Articles/ArticleHandler.aspx, 9/28/2016 6:33:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:00 PM
AMZN $816.11 Up +16.95 +2.12% CAPS Rating: ****
WMT $72.33 Up +0.71 +0.99%
Wal-Mart Stores CAPS Rating: ***