By now, I think it's safe to say that Jim Cramer was dead wrong.
And I was right on the money.
Here's the thing. I remember very clearly the day that Amazon.com Inc. (NASDAQ: AMZN) crossed the $1,000 mark on May 31, 2017.
Cramer, the host of CNBC's "Mad Money" looked at the price and slammed it. He said that "psychologically" $1,000 is a lot to pay for a stock he felt was getting ahead of itself.
As the saying goes, that was then and this is now.
No doubt, the tech leader hit a rough patch late last year with the rest of the market. And it has come under fire recently as part of the Big Tech backlash.
Yet, as the firm prepares to report earnings later this week, the stock is once again trading in the $2,000 range, double what Cramer was worrying about.
Not only that, but the "King of E-commerce" is just shy of hitting another historic moment. It's roughly 2% from having a $1 trillion market cap.
And today, I'm going to show you why I still firmly believe the stock will hit at least $3,000 a share – and likely much, much more than that…
Check it out…
Tracking Impressive Gains
At its current rate of advance, Amazon is close to being one of the more elite stocks of all time. Among big tech leaders, only Microsoft Corp. (NASDAQ: MSFT) has a $1 trillion valuation.
Apple Inc. (NASDAQ: AAPL) was the first to get there. But it has since lost about 10% of its market cap.
If you have any doubts about whether Amazon is the kind of stock you can count on for the long haul, just look at the facts.
The Biggest Tech Rollout in History is set to create an expected $1.4 trillion boom for the economy. Not only will you be able to kiss your cable box goodbye forever – you can also make a fortune. Learn more…
Since the market turned up again last Dec. 24, it has gained some 49%. By contrast the bellwether S&P 500 is up 27%.
That means a stock that the media wrote off as deeply troubled just last fall, beat the broader market by 78%.
Please don't think I'm gilding the lily here. This performance is no aberration.
Over the past five years, it has crushed the broader market by an astounding 880%!
I'm bringing up the five-year track record for a very good reason. See, I predicted back on Oct. 30, 2013 that the pioneer of cloud hosting would hit $1,000.
And a lot of folks in the financial media found that prediction just plain crazy.
So, when I say that Amazon is destined to hit $3,000 a share, I believe I have both the empirical data, and the credibility to make that claim.
Making a Bold Claim
Make no mistake. Amazon CEO Jeff Bezos just never quits looking for ways to add more growth. The idea is simple: continue to build investor value with high-margin growth that juices up the earnings per share.
Here are four examples of just what I'm talking about.
- Last February, it was the lead investor in electric-truck maker Rivian.
- It was also among the lead investors in a recent $530 million financing for Aurora Innovation, a self-driving auto startup.
- The firm invested just shy of $1 billion last year for PillPack, moving into the online-pharmacy business.
- In April, we learned it wants to launch a constellation of 3,236 satellites to beam down broadband web access to much of the world.
Those kinds of deal don't generate the type of heavy buzz Amazon got when it bought upscale grocery leader Whole Foods in 2017. At a cool $13.4 billion, the price tag stood out.
But it's the quiet moves that often have made this such a well-run firm.
The Undisputed Online Shopping Leader
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.