In the first quarter of 2018, analysts predicted the rapid growth in stock for Amazon. Some of them said that their business would grow so fast, that the stock is going to be near $10.000. Of course, it takes a lot of work to get there and the general prediction is that it will happen in around 7.5 years. Still, with their stock of just above $1200, it’s almost ten times more in just less than a decade.
Amazon Performance in 2018
September of 2018 marks one of the worst periods for the company. The company managed to knock the S&P 500 with its loss of 14%. Sure, the company survived a period similar to this in 2008 but this time, they stepped into negative territory. To be precise, seven percent in 2018. In the fourth quarter, the company lost 25%, which is a contrast to its 52-week high of $2050.50.
Amazon Performance in 2019
In the first quarter of 2019, Amazon managed to recover from some of the losses. The performance in January was 7.8% YoY in revenue. Still, we think that Amazon will get back on track quickly if they push two big initiatives, which we’ll talk about in just a second.
Amazon Go Revenue
Amazon Go is a cashier-less convenience store that began rolling out in 2018. As many predict, it will probably revolutionize the industry and by the end of 2021, Amazon should open 3000 stores worldwide. The revenue gained from these stores is expected to be around $4.5 billion in three years.
If Amazon could push into advertising, it would drastically improve the company’s stock. Of course, we have the giants like Alphabet, Facebook, and Google but Amazon has its weapon – Amazon Web Services (AWS). The operating income of $5.1 billion could help Amazon build its advertising business or any other kind of business.
To put it short, Amazon could get to $10.000 in less than 7.5 years if they push their business to the new territories of the market.