Amazon (NASDAQ:AMZN)
Amazon’s (NASDAQ:AMZN) stock price has risen by 15% since the beginning of June when it split for the first time. However, investing in the stock market for a quick gain is a useless strategy that won’t help you build wealth over the long run.
The time has come to do the heavy lifting of calculating whether or not Amazon stock is a good investment based on its expected growth. The answer is an emphatic yes. And here’s why.
Making headway on a new route
Even though Amazon (NASDAQ:AMZN) is now widely recognized as the leader in online retail, the company’s humble beginnings as an online bookstore mark a significant innovation. It has become the second largest corporation in the United States due to its willingness to expand into uncharted markets boldly, and maintaining its position as an industry leader requires it to maintain a presence in various markets.
Since it began its buying binge in 1998, when the company was less than four years old and had $610 million in yearly revenue, Amazon’s acquisitions have strengthened its business. But it was already venturing bravely into areas with precise openings in the rising online industry. Its first three purchases were from other online retailers in Germany and the United Kingdom, which Amazon then rebranded as Amazon.
It quickly became the most extensive online music shop when it began selling music. Six weeks later, a video service launched and quickly became the industry leader. In hindsight, these choices seem like no-brainers responsible for the company’s dominant position in the e-commerce market. The stakes have increased, but Amazon has not abandoned its expansionist culture.
Amazon’s (NASDAQ:AMZN) number of acquisitions is rapidly approaching 100 and shows no signs of stopping. When it bought MGM Studios for $8.5 billion in 2017, it was the company’s second most expensive acquisition, after Whole Foods’ $13.4 billion purchase the previous year. One Medical, a telehealth firm, will be acquired by the corporation in 2022 for $3.9 billion, while iRobot was just announced to be acquired by the company for $1.7 billion.
With the acquisition of MGM, Amazon Prime is now on par with the streaming offerings of other major studios. Adding thousands of films to its collection goes a long way toward helping Amazon Prime streaming compete with Netflix, Walt Disney’s Disney+, and other new streaming services.
Amazon (NASDAQ:AMZN) is just beginning to dip its toes into the vast healthcare market, but acquiring One Medical will help the company make a bigger splash in this area. Amazon is steadily working toward becoming a dominant player in this space, which has excellent potential. The healthcare sector is “high on the list of experiences that need reinvention,” according to Amazon. Therefore the company is eyeing it as an area for disruption. Long wait times for appointments and clinics are only two examples of the time wasters that telehealth and other health technology aim to remedy.
For Amazon (NASDAQ:AMZN), which sells its wide variety of home technology gadgets, the acquisition of iRobot is a perfect fit. For many years, it has worked as an e-commerce partner for iRobot, a manufacturer of robot vacuum cleaners like the Roomba.
Is there hope for this to go on?
Nearly twenty-five years ago, when Amazon (NASDAQ:AMZN) first started buying other businesses, many people thought it was a dangerous move. However, the payoff was apparent immediately and continued to grow over time. Though he has only been CEO for a year, Andy Jassy has been with Amazon from its infancy and is well-versed in its ethos. The company’s acquisition model is crucial to its success since it enables it to rapidly expand into new markets and establish itself as a market leader.
Amazon (NASDAQ:AMZN) appears to be just starting, so stockholders can anticipate further expansion and gains.
Featured Image : Megapixl © Alexeynovikov
Author Shariq Khan 
