Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
This One Chart Shows Just How Powerful Amazon Has Become
https://mney.co/2tH4i3K
Required Please enter the correct value.
Twitter
Stocks: amzn, TGT, WMT

This One Chart Shows Just How Powerful Amazon Has Become

By Casey Wilson, Associate Editor, Money Morning • July 10, 2017

View Comments

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Unfortunately for brick-and-mortar retail stores, the clock is ticking.

In fact, more retail stores have closed this year than during the entire 2008 financial collapse... and they aren't slowing down.

These retailers can thank Amazon.com Inc. (Nasdaq: AMZN) for their unfortunate demise.

Amazon is "eating the retail world," MKM Partners analyst Rob Sanderson wrote on July 7 in a note to clients.

His chart shows just how powerful the e-commerce leviathan has become over the past few years...

amazon

The median growth rate for the top 20 U.S. retailers, such as Wal-Mart Stores Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT), was only 2.4% in Q4 2016, 0.8% during Q1 2017, and is forecast to drop 0.2% in the next quarter.

Meanwhile, Amazon's stock has gained over 33% in the past 12 months, and shares are up about 29% in 2017.

Related: The "Retail Ice Age" Investment Strategy That Everyone Is Missing

In other words, Amazon is the "best long-term growth story available to investors today," according to Sanderson.

And Amazon's share of retail sales across the United States in key categories - sporting goods, clothing, personal care, and electronics - will only continue to accelerate from here, he added.

Amazon's surge in growth, combined with its skyrocketing share price, is "becoming large enough to make an impact," said Sanderson. "This [trend] does not end well for traditional retailers and many will go the way of Borders and Circuit City, leaders in the first two large categories disrupted by Amazon.com [books and electronics]."

Circuit City filed for Chapter 11 bankruptcy protection in 2008. Borders followed suit in 2011.

Indeed, Amazon's growing market share is a huge threat to the retail industry - both in-store and online. According to Fortune, Amazon accounts for over 34% of U.S. online sales.

And brick-and-mortar retailers can expect no relief from the online giant. According to the same report, Amazon is forecast to see its online market share grow to about 50% by 2021, thanks to its popular Prime membership and invasion of different markets, like pharma and grocery.

How to Play Amazon Now

There are two ways to profit off of Amazon's success, according to Money Morning Chief Investment Strategist Keith Fitz-Gerald. Keith has long been bullish on AMZN stock, even though it comes with a hefty price tag.

"Longer term, there's no question you want to own shares of Amazon," said Keith on April 10. "In fact, Amazon may well be the only company in the world today that you can buy today and expect to hold for the rest of your investing lifetime."

However, AMZN stock is not cheap. Amazon currently trades at over $997 a share - just a hair away from $1,000. "[At that price] you can either buy 100 shares or a really nice house in the competitive San Francisco Bay area," said Keith. "Normally I'd suggest a Direct Stock Purchase plan as a way around this problem, but Amazon doesn't offer one at the moment."

As a second option, "Consider buying just a few shares at a time," recommends Keith. "Heck, buy even one if that's what you can afford. Then, throw away the proverbial key."

Editor's Note: "Must-have" companies backed by Unstoppable Trends are a cornerstone of Keith's wealth-building strategy. But there's another type of investment he wants Money Morning Members to know about. It's one of his favorites, a kind of "desert island fund" he'd buy if he had to park his money in one place, "retire" from civilization for 20 years, and come back to a pile of money. Click here to learn more...

Follow Money Morning on TwitterĀ @moneymorning,Ā Facebook, and LinkedIn.

Up Next for You...

After the Whole Foods Deal, Amazon Is Eyeing This No. 1 Grocer

Amazon Is Opening Up Retail Stores, but Not for the Reason You May Think

Our Chart Shows What Would Have Happened If You Invested $1,000 in the Amazon IPO

Join the conversation. Click here to jump to comments…

Login
guest
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Joe
Joe
5 years ago

Sounds like B.S.

0
Reply
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz