The second any leading stock pulls back, the bears come out of hiding and scream that the sky is falling, suggests Todd Shaver, growth stock expert and editor of BullMarket.

You don’t need to look beyond Amazon (AMZN) to see that dynamic in action. The stock is a long way from its September peak. The company, however, hasn’t cracked.

If anything, our sense of profit growth for 2019 has improved over the past year. The revenue outlook has at worst rolled back 0.5%, so there’s still 20% growth here to look forward to on the top line.

For one of the biggest companies on that planet, that growth curve means the strategy is capturing tens of billions of dollars in new revenue from competitors. This is a company that’s grabbing market share and building new businesses.

When the market is in a rational mood, that’s the kind of stock you want to own. And yes, the company is diversifying its business footprint, with Amazon Web Services (AWS) expanding revenue by 46% YoY during 3Q18 alone. The company’s North America retail business is also accelerating, growing 5.4% for the quarter.

Add to this the fact that Amazon is starting to ignite its long-neglected third-party retail advertising business. Other merchants will pay listing fees to get their products into the Amazon search engine where that company’s vast audience of shoppers can see them. It’s still a small part of the overall revenue platform ($2.5 billion last quarter) but it’s doubling year over year.

At this rate, third-party advertising is on track to produce tens of billions of dollars for the company within five years. Google’s advertising business generates over $130 billion a year. Granted, Amazon is not a search engine, but as the biggest eCommerce site in the country it’s still the kingmaker for anyone smaller who wants to sell stuff online. If the Internet is a retail mall, Amazon owns it.

And as long as new revenue streams keep coming, Amazon justifies a 60X earnings multiple because it’s growing at least three times as fast as the market as a whole. That’s just the business lines on the table now, the Cloud Computing and Retail enterprises. Add third-party ads. Add whatever surprises Jeff Bezos has saved up for us.

Add grocery. It’s also worth noting that Whole Foods — another tertiary Amazon business — has the potential to meaningfully impact growth as well. Amazon has done everything right with the acquisition.

They’ve lowered costs, offered discounts and begun delivering groceries via Amazon Prime. All of that has the effect of squeezing the competition and it certainly isn’t far-fetched to assume that Amazon will come to dominate the Supermarket industry the same way it has other retail categories.

Amazon is a juggernaut that just keeps growing. The company took in $56 billion in revenue last quarter, a 7% sequential increase and up 30% over the past year. But the current numbers aren’t the real reason to invest. We’re all here for the future.

With Amazon’s advertising business just now starting to take off and Whole Foods poised for industry domination, there are too many revenue streams to ignore. So don’t fall victim to Wall Street’s short-term thinking. Stay focused on the big picture and invest in Amazon for the long haul. 

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