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, below-expected earnings reports for Q2 and Q3 of this year could only pull Amazon down into the $1,700 range, still far above what Cramer was worrying about.
Not only that, but the "King of E-Commerce" is well-positioned for another historic moment. It's roughly 15% away from having a $1 trillion market cap, and most of that would just be regaining lost ground.
And today, you'll see 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) and Apple Inc. (NASDAQ: AAPL) have a $1 trillion valuation..
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.
Over the past five years, it's made gains of 568% and crushed the broader market by an astounding 1,000%!
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 stock 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 deals 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.
About the Author
Michael A. Robinson is Defense and Tech Specialist for Money Map Press. He is a 36-year Silicon Valley veteran and one of the top technology 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.
Michael is 100% independent and receives absolutely no compensation from companies he writes about. His ideas are completely his own.
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