|Symbol||Stock||Price change today|
|AMAT||Applied Materials Inc.||3.15%|
|CBPO||China Biologic Products Inc.||2.74%|
|HDSN||Hudson Technologies Inc.||2.57%|
|EW||Edwards Lifesciences Corporatio||2.04%|
|ALXN||Alexion Pharmaceuticals Inc.||1.92%|
|GTN||Gray Communications Systems In||1.70%|
|REGN||Regeneron Pharmaceuticals Inc.||1.34%|
|HZO||MarineMax Inc. (FL) Common St||1.18%|
|BWLD||Buffalo Wild Wings Inc.||1.08%|
|SAM||Boston Beer Company Inc. (The)||1.07%|
|GWR||Genesee & Wyoming Inc. Class A||1.07%|
|ALGN||Align Technology Inc.||1.06%|
|AZPN||Aspen Technology Inc.||1.05%|
|UA||Under Armour Inc. Class C Comm||0.96%|
|MEI||Methode Electronics Inc. Commo||0.94%|
|TMO||Thermo Fisher Scientific Inc Co||0.78%|
|MRK||Merck & Company Inc. Common St||0.59%|
|LULU||lululemon athletica inc.||0.52%|
|TRN||Trinity Industries Inc. Common||0.43%|
|MIDD||The Middleby Corporation||0.39%|
|CRUS||Cirrus Logic Inc.||0.38%|
|SWKS||Skyworks Solutions Inc.||0.21%|
|COF||Capital One Financial Corporati||0.01%|
|PCLN||The Priceline Group Inc.||-0.01%|
|MET||MetLife Inc. Common Stock||-0.06%|
|STZ||Constellation Brands Inc. Comm||-0.16%|
|AYI||Acuity Brands Inc (Holding Comp||-0.27%|
|SUI||Sun Communities Inc. Common St||-0.41%|
|EXR||Extra Space Storage Inc Common||-0.41%|
|BABA||Alibaba Group Holding Limited A||-0.42%|
|MNST||Monster Beverage Corporation||-0.46%|
|DPZ||Domino's Pizza Inc Common Stock||-0.52%|
|CVCO||Cavco Industries Inc.||-0.78%|
|HOG||Harley-Davidson Inc. Common St||-0.88%|
|MCK||McKesson Corporation Common Sto||-1.10%|
|ULTA||Ulta Beauty Inc.||-1.20%|
EVERY chief executive hopes to lead his company to success. Jeff Bezos, Amazon’s boss [stckqut]AMZN[/stckqut], wants something more epic. A prominent wall in the company’s headquarters in Seattle is covered with narratives from historic explorations: excerpts from “The Odyssey”; notes from the journey of Lewis and Clark as they ventured across America; the transcript of the first moon-walkers talking to mission control. At the end, ones and zeroes spell out how far the company has got: “Day One”.
The phrase, reflecting Mr Bezos’s belief that Amazon’s journey has just begun—and begins again each day—is the company’s mantra. At any other firm such grandiosity would invite derision. At Amazon, it makes investors drool and rivals quake.
Amazon, which went public 20 years ago, is now the world’s fifth-largest company by value, worth over $400bn (see chart). Its e-commerce site accounts for about 5% of retail spending in America, roughly half the share of Walmart, the biggest firm in the sector. It is the biggest online retailer in America, and accounts for over half of all new spending. Its cloud-computing business, Amazon Web Services (AWS), is larger in terms of basic computing services than the three closest competing cloud offerings combined.
Since the start of 2015 Amazon’s share price has risen by 173%, seven times the growth of the preceding two years. Operating profits have expanded, too, but at $4.2bn remain relatively small—which is how shareholders like it. Amazon has always emphasised the value of long-term growth (presumably with some bigger profits down the line), and investors have come to accept this. In February, when Amazon reported higher profits but lower revenue than expected, its share price temporarily dipped. Shareholders worried it might not be set to grow as quickly as they had hoped.
Morgan Stanley, a bank, expects Amazon’s sales to rise by a compound average of 16% each year from 2016 through to 2025: that is higher than its estimates for Google or Facebook. That is a slower pace than Amazon managed over the past decade; but the bigger a company is, the harder it is to keep growing. Amazon’s annual sales of $136bn are almost 50% more than those of Alphabet, Google’s parent, and over four times Facebook’s. Credit Suisse, another bank, calculates that only ten firms with sales of more than $50bn have managed to grow by an average of 15% or more for ten years straight since 1950; no company with sales of more than $100bn has done so. If Amazon were to pull it off, it would be the most aggressive expansion of a giant company in the history of modern business.
As an example of the success that my book teaches, in a 7 year time frame from January 3, 2006 to December 31, 2012, Decker Corporation increased 304.7% if you would have implemented a pure buy-and-hold strategy. If you would implemented the strategy that I explain in my book, The Confident Investor, you would have seen a 371.2% return on your investment. This is a 21.8% increase on the profit percentage.
Can your investment system beat the market by that much?
Thank you for being a registered book owner. Please remember that the below indicators should NOT be considered signals for you to invest in or sell any of these stocks. Rather, you should double check all analysis and understand that the decision to invest in or sell one of these stocks is purely your own. This information is purely provided for educational purposes.