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The data isn't all in just yet, but all indications are that Amazon.com Inc. (Nasdaq: AMZN) crushed it on Black Friday and Cyber Monday. In fact, online shopping in general crushed it.
Consumer spending last Monday may top $3.45 billion, according to Adobe Digital Insights. That's easily the highest number we've seen yet and a sign that the economy is stronger than people think.
It's also a sign that the "Amazon Effect" is very real and very powerful.
Still, there's a note of caution.
Shares of retailers like Wal-Mart Stores Inc. (NYSE: WMT), Kohl's Corp. (NYSE: KSS), and Target Corp. (NYSE: TGT) also beat the record books, and that's got a lot of investors really excited because many believe it means the big-name traditional brick-and-mortar stocks are capable of competing.
Don't fall for it!
I know those very same companies have all made big improvements to their online shopping apps and that they're dabbling in mobile payments, but those things amount to little more than a feeble attempt to keep up.
They're simply moves intended to do one thing… stave off Amazon.
It's fashionable to bat around the notion that specific companies are "Amazon-proof," but there's no such thing. Any investor who thinks there is, is deluding themselves.
Five years ago, people would have said that Whole Foods Market Inc. (Nasdaq: WFM) had nothing to fear from Amazon because it sold food and other perishable items. Now, Amazon owns the chain formerly referred to by shoppers as "Whole Paychecks."
And, not surprisingly, many formerly uber-expensive items are actually cheaper than you can buy them in the big-box retailers or traditional brick-and-mortar grocery stores.
Still, there is one company that can compete with Amazon, and one deal that I think is going to happen as the battle begins.
Here's what you need to know…
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About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.
Excellent analysis!
To much to keep up with.