This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Amazon to $314? You Betcha

Both destinations, on their own, and as comparison cases, have something -- or several somethings -- compelling enough to attract and draw us in. Few retailers can say that. Other than getting something right now, there's no reason to waste precious time on something as uninspiring as visiting a brick and mortar retail outlet.

It all gets done online. Until retailers step it up to the Apple (or Tesla Motors (TSLA - Get Report) or Lululemon (LULU - Get Report)) level, that's not about to change.

Today, Caris raised estimates for Amazon's top and bottom line. It also upped its price target on the stock to $314.

Don't let the bears, who likely do not have the guts (because, deep down, they're smart) to short the stock, suck you into a trap. Only about 2.3% of AMZN's float is short; that's roughly 8 million out of 364 million shares. Lots of people are talking the talk, but not walking the walk.

Amazon doesn't tell us how many Kindles it sells. Its margins stink. Profits blow when they report them. They spend too much. They took out a $3 billion bond.

All of the above and anything else the bears come up with doesn't matter.

Look at AMZN like you look at decorating a baby's room before it has been born. You are getting everything ready for big event. Of course, the entire pregnancy is a big deal. And you treat it as one. But, for nine months, you lay the groundwork for the really big event -- the birth of a new life that will sustain and breathe even more vibrancy into the world.

Amazon operates on a longer life cycle, but it's the same concept.

Don't short children because, after all, they are the future. And don't short AMZN because Jeff Bezos and his team continue to write the future.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $112.92 2.94%
AMZN $518.37 3.51%
LULU $62.64 3.86%
MSFT $43.90 2.79%
TSLA $242.99 8.07%

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs