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Projected 2012 growth: 30%
2013 growth: 28%
2014 growth: 27%
You didn't think we'd ignore e-tailer
Amazon(AMZN - Get Report), which has single-handedly upended an entire sector. The fact that sales have already reached $48 billion prior to those projected growth rates is nothing short of remarkable. But it's not without controversy. Amazon has been rightly accused of chasing top-line growth without a commensurate focus on profits.
Management is fine with that criticism. The company thinks there are still many retail niches that it can conquer, so it can create long-term shareholder value by sacrificing short-term margin considerations. Presumably, when Amazon's heavy slate of investments in new growth initiatives finally starts to cool off, investors will see profits surge to new heights.
As is the case with Salesforce.com, shares don't look like a bargain based on near-term profit projections. Instead, investors have to simply trust that management's long-term gambit will pay off. Management has already amassed a remarkable track record and deserves the benefit of the doubt.
The fact that shares are now $50 cheaper than they were in October 2011 may be help investors rationalize that they are not overpaying for shares right now.
Amazon shows up on a recent list of
15 Apple-Like Stocks That Could Bear Similar Fruit.