Brick-and-mortar retail stores are dying, but our new Amazon stock price prediction shows the e-commerce stock will continue to outperform traditional retailers.
Stores like Sears Holding Corp. (Nasdaq: SHLD) (-23%), Kohl's Corp. (NYSE: KSS) (-14%), and Macy's Inc. (NYSE: M) (-9%) are all tanking in 2017.
On the other hand, Amazon.com Inc. (Nasdaq: AMZN) stock is up 12% year to date (YTD). And our newest Amazon stock price prediction shows there is plenty of room to grow.
The stark contrast between traditional retail and e-commerce is only expected to grow in 2017. And that's part of the reason we expect Amazon stock to keep rising...
Amazon Stock Price Prediction Set at $900
Money Morning Options Trading Specialist Tom Gentile just released a new Amazon stock price prediction and set his price target at $900 on Feb. 1.
Since he released his target, we've received even more bullish news on the stock.
Amazon posted a better than expected earnings report Feb. 2. The company showed a 27% increase in revenue, led by its e-commerce and cloud-computing divisions.
Not only did Amazon grow revenue, its net income was up 302% year over year. That was mostly due to cutting costs.
Analysts expected earnings per share (EPS) of $1.35 for Q4. The company posted $1.54 EPS for the quarter. For the full year, AMZN reported earnings of $4.90. Next year, analysts expect that to climb to $7.29.
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The company also saw major growth in its list of offerings. In 2016, the company released over 1,000 new services/features. That is an increase of more than 25% from 2015.
A notable addition to the lineup in 2016 was Wickedly Prime. This service is available to Prime members and is a private-label line of food and beverages.
Amazon is looking to continue expanding its offerings this year as well. Last Friday (Feb. 10) the company announced it will be offering its own line of bras. These moves into grocery and clothing lines show how Amazon is going directly after traditional retailers.
But this bullish sign is the best indicator of future growth...
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"Amazon recently announced its plans to hire an additional 100,000 people this year to work in its distribution centers. This wouldn't happen unless they needed to meet growing demand, so take that as a bullish sign," said Gentile.
The hiring spree Amazon is on indicates that growth will continue through 2017.
The company has been on a hiring spree since 2011. At that time, the company had 50,000 employees. The increased number of new jobs for 2017 will push Amazon over the 300,000-employee mark this year.
That's why Gentile has an Amazon stock price prediction of $900. This kind of rapid expansion could mean Amazon hits that mark very soon since AMZN stock is currently trading at $837.22.
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