The battered American retail industry has left shopping malls with hundreds of slots to fill, and the pain could be just beginning. Year-to-date store closings are already outpacing those of 2008, when the last U.S. recession was raging.
Who is taking away business from brick and mortar retail? Our beloved Amazon (AMZN). The convenience of sitting at home on your phone or iPad and shopping is just a fantastic value proposition.
The types of trips people are now taking to the mall and the number of trips is all changing. Amazon accounted for 53% of e-commerce sales growth last year.
The projected 2020 EPS of $37 for the company tells us there is just massive growth ahead for Amazon that supports a much higher valuation.
At $425 billion the company is the 4th largest market cap in the world. Don’t let the high stock price scare you away. If you have $20,000 to invest buy 22 shares. The only thing that matters is the total amount invested, not the dollar price of the stock.
And who knows, maybe Jeff Bezos will decide to split the stock someday. A 10-1 stock split would be some big news, wouldn’t it? And then you would have 220 shares at $90 a share. Now that would be exciting.
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