Amazon stock is all set to lead in 2016

by Darwin on January 2, 2016

From a meek beginning as a bookseller, Amazon has evolved into the largest eCommerce site selling all over the world. What takes Amazon to this height? The answer is simple yet interesting; innovation. An appetite to innovate is a major key for the ultimate success these days, like what Alphabet Inc. did with advertising and what Apple did in the technology industry. With continuous innovation and diversification, Amazon has built its eCommerce empire; from starting off as a local bookseller and emerging triumphantly as the world’s largest e-commerce seller.

Amazon’s biggest strength is its defensive moat. According to Morgan Stanley estimates, Amazon will control more than 23% of global market share  in the eCommerce industry by next year. Consumer electronics, same day delivery, and streaming media are the major strengths of Amazon which widens its moat. The crux of its defensive moat and strategy is that Amazon offers an annual service of $99 which enables enabling their members to enjoy e-books, product discounts, free two-day shipping, and various other benefits.

Almost all financial analysts are in favor of Amazon’s stock, promising a bright future and top performance in 2016. The consensus forecast EPS (Earnings Per Share) to increase from $1.86 per share in December 2015 to an astounding $5.00 by the end of December 2016. None of the last four weeks’ revision has shown any down in EPS forecast. The strong financial performance has made the stock an attractive investment and all analysts recommend to hold the stock as shown below in the graph. Analysts recommend either to buy or hold the stock to enjoy a promising investment of Amazon stock in the year to begin.

Screen Shot 2016-01-02 at 8.08.00 PM


After having analyzed the past performance and observing future prospects of the company, who does not want to invest in Amazon stock? Who can deny such an attractive option provided if there is a spare money to invest? The only issue which most of the investors face is the risk of failure or to ending up with a poor investment.

As some of the prospective investors have less money to invest in one stock or portfolio independently, they look for other options; here comes the binary and pair options. These are the ways to get into stock trading without being silly or losing so much money in the investment process. Both of these options give high profit but with high risk. Though considered easy to understand for the beginners, an independent investment in these options is still not recommended as the risk is quite high and the investors are novice with little or no background in finance or accounting.

Both options work like gambling as you make an investment of your choice, but if the stock or index does not perform as you expected, you get nothing. What the investors should do is it to go to the brokers who offer high binary payout options ratio, as only then you can make a less risky investment. You can also enjoy other services offered by these brokers, which include foreign exchange services, loan facilities, administration and safekeeping of your funds.

Unlike binary options where the stock or index is assessed against a threshold, pair options work against another stock or index and the comparison of the two stocks is made. You get money if you are correct, or lose money if you are wrong. The stockpair in-depth review gives a detailed analysis of how safe a pair option is, how it works for the investors, and gives a good overview for investors to choose a good, reliable broker to invest with.

Amazon continues to grow and expand around the globe. Also through major investments in AWS (Amazon Web Service; cloud computing) which makes Amazon stand far above from its global competitors. Amazon is a company with a focused vision and bright future as it has various profitable pies in the plate (globe). Thus, the question is not if the company can compete or expand, but can any other company come across Amazon’s way to success? Seems impossible for the coming year, Amazon’s stock is all set to lead in 2016.

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