I bought majority of my amazon stock on sep 2020, and now I heard many people saying amzn is not moving and providing any gain for the past few month, so I am going to list few reasons that why you should keep holding the stock.
- The e-commerce and cloud giant has had a $5 billion share repurchase program in place since February 2016, the last time Amazon bought back any of its stock was the first quarter of 2012, so the streak is 33 quarters of no stock buyback. But with the new ceo coming, he might change and start to repurchase the stock, remember before tim cook take over apple, apple did not give out any dividend, and then it changed.
- Prime member engagement keep increasing and prime membership is still growing yoy. All major product categories demand continue to raise across globally.
- Amazon high growing aws and advertising revenue streams are getting more profitable, the advertising division could keep growing and getting some market share from fb and google.
- Amazon bottom line is improving much better compared to analysts predictions, the last few quarters it beats expectations by a lot. With the covid situation getting more under control, the covid related expenses will mitigate, and amazon will be more profitable.
- Amazon delivery fleet is growing, I have seen my packages constantly delivered by amazon vans and contractors. In the future, amazon will be less dependent on USPS, fedex and UPS, and might even able to compete with UPS and Fedex.
- Finally the stock split, with the new ceo coming, this might become possible as well, this will be a positive catalyst that all investors want to see.
I will be keep holding my amazon stock, if it really dip further, I will buy more, I will hold amazon stock until I retire.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.