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.
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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.
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About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.