Is Amazon Stock a Long-Term Winner?

Making the case that Amazon stock is still a winner despite some of its recent problems.

Jun 23, 2014 at 7:30AM

It's somewhat of a historical rarity to find any period of time where shares of online juggernaut (NASDAQ:AMZN) have been down about 17%, but that's exactly what has happened to shares thus far in 2014.

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Amazon's minuscule profits and poor competitive prospects against the like of powerful device makers such as Apple (NASDAQ:AAPL) have weighed significantly on Amazon shares. Amazon probably didn't help its case as a budding device dynamo when it launched its seemingly impotent Fire Phone earlier this week. However, despite all the recent doom and gloom, now could prove an attractive point for long-term investors to snap up Amazon shares at suppressed prices.

The case for owning
Unlike shares of Apple, which have proved to be a perennial bargain in recent years, Amazon stock is rarely discussed as "cheap." However, there's a case to be made that Amazon, like Apple, still could have its best days ahead of it.

In keeping with its Apple parallels, part of what makes Amazon so exceptional is its ruthlessly long-term-oriented corporate mindset, a line of thinking that gave birth to the likes of the then-unpopular Prime shipping service and Amazon Web Services. Both initiatives have become smash hits for Amazon and its investors, and it's this same kind of savvy, big-picture thinking that remains alive and well at Amazon. In the following video, tech and telecom specialist Andrew Tonner breaks down why he thinks, even despite its recent share-price struggles, remains an attractive long-term holding for investors today.

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!


Andrew Tonner owns shares of Apple. The Motley Fool recommends and Apple and owns shares of, Apple, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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