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4, Inc. Stock: Is It Time to Sell?

Think for a moment about the logical progression of retail: A century ago, we got most of our goods from local stores owned by people we called our neighbors.

But then, starting about 50 years ago, nationwide retailers -- led by Wal-Mart  (NYSE: WMT  ) -- started to capitalize on the efficiency of scale and offer goods for far lower than mom-and-pops could. Indeed, shareholders in Wal-Mart have realized astounding returns since the company's IPO. And the company is still one of America's largest employers, with 2.2 million finding full-time employment at their local Wal-Mart.

But every giant can be disrupted, and that's what (NASDAQ: AMZN  ) has been doing to Wal-Mart, little by little, for over a decade. In addition to offering a more convenient way to purchase goods, Amazon has expanded well beyond the realm of retail to be a dominant player in areas like cloud computing, streaming movies, and e-readers/tablets.

But in just three months' time, a quarter of Amazon's market cap -- or roughly $45 billion -- has disappeared. Bears have legitimate concerns about the company moving forward. The Motley Fool's Brian Stoffel introduces investors to these broad concerns and what he thinks about them. Watch to see whether Brian thinks Amazon can continue to outpace traditional foes like Wal-Mart and if the stock is still worth holding on to.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 


Read/Post Comments (3) | Recommend This Article (4)

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.

  • Report this Comment On May 13, 2014, at 4:15 PM, sjclou wrote:

    I'd be inclined to agree with your premise that Amazon is 'investing for the future' if their fulfillment costs were dropping (as a % of revenues) as they grow. But they've actually been climbing due to the inescapable fact that it's really not efficient to try to sell 'everything'. If I buy a box of roofing nails and a bottle of shampoo on the same order, Amazon has to find both of those items in the same warehouse (or pay two shipping charges- never a good thing). It doesn't look like this is a problem that's going to get better over time.

  • Report this Comment On May 13, 2014, at 4:34 PM, pondee619 wrote:

    By Brian Stoffel

    " The Motley Fool's Brian Stoffel introduces..."

    "Watch to see whether Brian thinks Amazon ..."

    I get a sense that Brian did not write the above article, just put in the face time on screen, by line notwithstanding.

  • Report this Comment On February 05, 2015, at 4:07 PM, dlmich wrote:


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Brian Stoffel

Brian Stoffel has been a Fool since 2008, and a financial journalist for the Motley Fool since 2010. He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future.

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