- Apparel, shoes, and accessories, as well as home improvement and furniture, remain growth opportunities as they are only 4 percent and 20 percent penetrated online.
- Amazon has been rapidly diversifying its business lines with significant investments in cloud computing , healthcare , and groceries.
Amazon is up more than 1 percent in trading Wednesday, closing in on a new high. Shares set their previous record of $1,498 after gaining more than 6 percent on estimate-topping earnings on February 2.
The company has escaped the volatility that rocked markets earlier this year relatively unscathed and has easily outpaced the benchmark S&P 500. It’s up 25 percent year-to-date, compared to the S&P 500’s 1 percent gain.
Amazon has been rapidly diversifying its business lines, with significant investments in cloud computing, healthcare , and groceries – all of which have taken significant chunks of market value away from competitors.
Even in its flagship e-commerce division, there is still plenty of room to grow.
“Apparel, shoes, and accessories, as well as home improvement and furniture, remain growth opportunities as they are only 4 percent and 20 percent penetrated online,” Credit Suisse said in a note to clients earlier this year. “These are also categories that have larger absolute revenue dollars versus consumer electronics and media.”
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Shares of Amazon have gained 73 percent in the past year.
Date: Feb 21, 2018